Daily outflows from the Grayscale Bitcoin Trust (GBTC) have reached their lowest levels since the trust’s launch, sparking optimism that the ongoing exodus of Bitcoin holdings may be coming to a halt.
According to data from BitMEX Research, on January 24, GBTC experienced outflows of $429 million, the smallest daily outflow since the launch of Grayscale’s spot Bitcoin ETF on January 11. This marks a 33% slowdown compared to outflows at the start of the week on January 22.
Bloomberg ETF analyst Eric Balchunas acknowledged this trend, stating that GBTC outflows appear to be decreasing, although he noted that the absolute outflow amount is still substantial. Balchunas previously stated that there were too many uncertainties to predict when the mass exodus from GBTC would cease.
Over the course of nine trading days, GBTC has seen outflows of 106,092 BTC, valued at approximately $4.4 billion.
However, it’s essential to note that a reduction in daily outflows does not necessarily mean that the GBTC’s selling pressure is ending. Balchunas had previously estimated that GBTC would need to lose around 25% of its outstanding shares before outflows could halt.
Arkham Intelligence, a blockchain tracking firm, has also cautioned against misinterpreting GBTC’s outflow data. They explained that the outflow data displayed on their platform is divided between Coinbase Prime and new GBTC custody addresses. As a result, not all of the BTC moved from Grayscale’s Bitcoin Trust is necessarily being redeemed, as Bitcoin transaction outputs are often divided among multiple addresses.
In summary, while the decrease in daily outflows from GBTC is a positive sign, it’s essential to consider various factors and uncertainties that may still impact the trust’s Bitcoin holdings.