• Grayscale’s GBTC experienced a nearly $600,000,000 outflow on Thursday, its biggest single-day redemption in the past 22 weeks. However, inflows to other bitcoin ETFs have offset this.
  • BlackRock‚Äôs IBIT enjoyed another successful day, surpassing $10 billion in assets managed.

The Grayscale Bitcoin Trust (GBTC), a U.S. listed exchange-traded fund that tracks spot bitcoins , saw a spike in outflows on Thursday. However, the other funds more than offset these GBTC sales.

The BitMEX Research data shows that GBTC experienced $599 million in outflows. This is almost triple the redemption on Wednesday and represents the largest outflow for a single day since January 22. BTC Price Index and Live Chart – CoinDesk”>(BTC) to crypto exchange Coinbase Prime (presumably to be sold) as markets opened in the U.S. on Friday morning.

Grayscale Bitcoin Trust transferred nearly 10,000 Bitcoin to Coinbase on Thursday (Arkham Intelligence).

The massive outflow may indicate that Genesis, a crypto lender, has started to unload its GBTC shares in order to capitalize on the bitcoin rally. Genesis was granted bankruptcy court approval by on February 14 to sell 35,000,000 GBTC shares, which were worth $1.3 billion at the time. They are now worth approximately $1.9 billion. However, outflows of GBTC have been muted for two weeks before Thursday’s spike.

The GBTC exit on Thursday was reminiscent to the mid-January sale of approximately $1 billion in shares by the bankruptcy estate for collapsed crypto exchange FTX.

Grayscale’s GBTC was a closed-end mutual fund that did not allow redemptions up until January, when it converted to a spot exchange traded fund. The shares of Grayscale’s GBTC traded at a substantial discount to their net asset value in the two-year crypto bear market, but this discount disappeared in the lead up to and the final conversion to an ETF.

BlackRock’s Bitcoin ETF exceeds $10 billion in AUM

Grayscale’s large outflows on Thursday were offset by inflows to the other U.S. listed spot bitcoin ETFs. BitMEX Research reports that the net inflows of $92 million were the lowest for a week.

BlackRock’s iShares bitcoin ETF (IBIT), which is managed by BlackRock, recorded yet another massive inflow of funds. The fund raked in $604 million and added more than 9,700 Bitcoin. The record-breaking session on Wednesday was followed by this massive inflow. The fund now has over $10 billion of assets under management, and more than 161,000 bitcoins. This is only seven weeks since its debut.

The recent price rally of BTC has seen the ETF market demand for bitcoin surge. This is the first time that BTC prices have exceeded $60,000 since November 2021. Bitcoin’s best monthly performance since December 2020 was 44%. This outperformed the CoinDesk 20 Index ( CD20 ) which rose 41%.

Stephen Alpher edited the book.