Grayscale Bitcoin Trust (GBTC) experienced a record low in outflows, coinciding with Bitcoin‘s recovery following the volatility triggered by new US inflation data. According to Farside data, GBTC saw an outflow of $17.5 million on April 10th, a significant drop compared to the $154.9 million outflow recorded on April 9th.
GBTC Sets Another Record
Amid these developments, the price of Bitcoin increased by 2.08% in the last 24 hours, trading at $70,474 according to CoinMarketCap data at the time of writing. Within the same timeframe, after the release of the US Consumer Price Index (CPI) for March, Bitcoin briefly dropped to a local low of $67,482 and ended up being 3.5% higher than expected on an annual basis. This situation has raised concerns that the US Federal Reserve might delay interest rate cuts even further.
Some crypto commentators are hopeful that the slowdown in GBTC outflows, which have reached $16 billion since its conversion to a spot Bitcoin ETF fund in January, could be the beginning of a trend. Thomas Fahrer, CEO of the crypto-focused review portal Apollo, asked his 41,500 followers in a post dated April 11th:
“Is the GBTC sell-off over?”
What’s Happening in the ETF Space?
Fahrer also noted that the April 10th outflows were roughly equivalent to 250 Bitcoins and that there has been nearly a 95% decrease in outflows since the beginning of the week. Just a few days earlier, on April 8th, Grayscale witnessed outflows worth $303 million, equivalent to 4,288 Bitcoins.
The previous low was on February 26th, with an outflow of $22.4 million from GBTC. The average daily GBTC outflows over four months have been $257.8 million. Fidelity Wise Origin Bitcoin Fund recorded an inflow of $76.3 million, BlackRock’s iShares Bitcoin Trust $33.3 million, Bitwise Bitcoin ETF Fund $24.3 million, and ARK 21Shares Bitcoin ETF Fund $7.3 million. The recently bankrupt crypto lending firm Genesis sold approximately 36 million GBTC shares to purchase 32,041 Bitcoins.
