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Grayscale’s Bitcoin ETF Records Record Low Outflows Amidst Rising Market Momentum

Grayscale’s spot Bitcoin exchange-traded fund (ETF) has encountered its third consecutive trading day of dwindling net outflows, plummeting to a record low of £22.4 million as ETFs collectively achieved a two-week net inflow peak.

Farside Investor data for 26th February reveals that the Grayscale Bitcoin Trust (GBTC) experienced three successive days of diminishing net outflows on 22nd, 23rd, and 26th February.

The trading week culminated on Friday with a daily net outflow of £44.2 million, which further halved on 26th February.

Daily net GBTC outflows reached their zenith on 22nd January, amounting to £640.5 million.

Nevertheless, Grayscale has endured 31 consecutive trading days of outflows since its transition to an ETF on 11th January, with a total of £7.47 billion drained from the ETF.

CEO of Bitcoin technology firm Blockstream, Adam Back, shared on X on 26th February that he is “waiting for the day GBTC flashes an inflow.”

Back suggested that while it “could happen,” it would necessitate “just enough premium” to motivate traders to arbitrage the ETF.

Henrik Andersson, Chief Investment Officer at asset manager Apollo Crypto, concurred in a separate X post, asserting that when Grayscale’s fund records a net inflow for the first time, it “will be a mega signal to the market.”

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Meanwhile, Farside’s data for 26th February indicates that the combined net inflows of all Bitcoin ETFs excluding Invesco and Galaxy’s reached £515.5 million — the highest in two weeks.

The ETFs attained a combined net inflow of £631.3 million on 13th February but have struggled to sustain the momentum since, witnessing even a net outflow of £35.6 million on 21st February due to a comparatively larger outflow day from GBTC and smaller inflows to other funds.

Fidelity’s ETF garnered the majority of the inflows on 26th February, exceeding £243 million, constituting nearly half of the day’s net total.

It marks FBTC’s second-highest inflow day ever, following behind 17th January.

The remaining half of the net inflow stemmed from BlackRock’s ETF, along with ARK Invest and 21Shares fund, which received respective inflows of nearly £112 million and over £130.5 million.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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