Grayscale’s spot Bitcoin exchange-traded fund (ETF) has experienced substantial outflows, with an estimated $1.1 billion withdrawn in just three days of trading. This rush by investors to exit the fund occurred as the discount on the ETF narrowed to its lowest level in nearly three years.
On January 16 alone, about $594 million was withdrawn from the fund, as reported in a post by Bloomberg ETF analyst James Seyffart on X (formerly Twitter). While Seyffart noted inflows into other recently launched Bitcoin ETFs, he expressed doubt that these were sufficient to offset the significant outflows from the Grayscale Bitcoin Trust (GBTC).
Cathie Wood’s ARK Invest has started investing in its own ARK 21Shares Bitcoin ETF (ARKB) and has sold shares of the Proshares Bitcoin Strategy ETF (BITO) and other technology-focused shares in its ARK Next Generation Internet ETF.
The recent developments in the Bitcoin ETF market, particularly the significant outflows from GBTC, highlight the dynamic nature of cryptocurrency investments and the shifting strategies of major players like ARK Invest. The conversion of GBTC to a spot ETF and the narrowing discount have led to a notable change in investor behavior, reflecting the evolving landscape of cryptocurrency-based financial products.
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