GBTC Outflows Show Signs of Stabilization
The outflows from Grayscale’s Bitcoin Trust (GBTC) have shown signs of slowing down, raising hopes that the massive selling of Bitcoin could be coming to an end. Data from BitMEX Research indicates that on January 24, the outflows were $429 million, the lowest daily amount since the launch of Grayscale’s Bitcoin ETF on January 11. This represents a 33% decrease compared to the start of the week on January 22. Bloomberg ETF analyst Eric Balchunas commented on the trend, acknowledging that while it is still a significant number, it seems to be trending downwards.
Balchunas had previously stated that there were too many unknown factors to predict when the “mass exodus” from GBTC would cease. The trust has lost a total of 106,092 BTC, which is approximately worth $4.4 billion, over the course of nine trading days. It is important to note that a slowdown in daily outflows does not necessarily mean that the bleeding of GBTC has stopped or is slowing down. Balchunas had estimated that GBTC would lose around 25% of its outstanding shares before the outflows come to an end.
Arkham Blockchain tracking firm, Arkham Intelligence, cautioned against misinterpreting the GBTC transaction data. They explained that the outflow data shown on their platform is divided between Coinbase Prime and new GBTC custody addresses. This means that not all of the BTC being moved from Grayscale’s Bitcoin Trust is necessarily being redeemed. They clarified that due to the nature of Bitcoin transactions, the outputs are often split among multiple addresses. GBTC custody wallets frequently send to various addresses, so some of the BTC sent in a transaction may go to a different address than what is shown as the main recipient in the transaction panel.
3 thoughts on “GBTC Outflows Show Signs of Stabilization”
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The estimated loss of 25% of outstanding shares is still a huge amount. We shouldn’t underestimate the impact of the outflows.
It’s frustrating how this article tries to spin the decrease in outflows as a positive sign. The bleeding of GBTC is still ongoing.
The caution from Arkham Intelligence should be taken seriously. The outflows might not mean that BTC is being redeemed, so the situation might be worse than it seems.