Grayscale has converted nearly 113,000 Bitcoins into spot ETFs, with a total value of more than $4.5 billion

According to the latest Arkham Intelligence data, since the 11th, Grayscale GBTC has continued to experience large capital outflows after being successfully converted into a Bitcoin spot ETF. According to reports, Grayscale has recently transferred nearly 113,000 Bitcoins from its wallet address, with the vast majority of Bitcoins being transferred to Coinbase Prime and expected to be sold. This situation shows that investor demand for Bitcoin spot ETFs is high, and they are taking advantage of this opportunity to conduct large-scale trading activities. Grayscale’s outflows may have some impact on the Bitcoin market, so it’s worth paying close attention to.

According to data from Grayscale’s official website, the current number of Bitcoins held by GBTC is approximately 537,000. This number has decreased by approximately 100,000 Bitcoins since the 11th. It should be noted that Arkham Intelligence pointed out that although a large number of Bitcoins are flowing out of Grayscale wallet addresses, it does not mean that all these Bitcoins will be sold. Outflows tend to be dispersed between Coinbase Prime and the new GBTC escrow address, meaning not all Bitcoin transferred out will be redeemed. The outflow of funds seems to be the settlement of the previous day's trading activity. Taking the 24th as an example, about 75% of the outflowed Bitcoins went to Coinbase Prime.

According to Coindesk reports, there are multiple reasons for GBTC’s large capital outflows, but the main reason is that after Grayscale converted GBTC into a spot ETF, management fees only dropped by 0.5% to 1.50%. This makes GBTC’s management fees more than 1% higher compared to the other nine Bitcoin spot ETFs. As a result, GBTC’s assets under management fell by more than $1 billion on average this week.

After converting to spot ETF, the net outflow was nearly US$4.4 billion

According to data from BitMEX Research, the net outflow of GBTC funds on the 24th was US$429 million. In the nine trading days since the Bitcoin spot ETF was approved, cumulative net outflows have reached $4.39 billion.

The price of Bitcoin continues to fall, and the outflow of GBTC funds is considered to be the main reason. However, Bloomberg analyst Eric Balchunas said that although Grayscale once again transferred more than 10,000 Bitcoins on the 24th, the trading volume of GBTC on the 24th had declined for the third consecutive trading day, which may be a sign of selling fatigue. This means investors may start to lose interest in selling, and market sentiment is expected to pick up.

Eric Balchunas further pointed out that the capital outflow of GBTC on the 24th was only US$425 million, which was the lowest capital outflow since the first day of conversion to spot ETF, and the scale of outflow continued to show a downward trend, and he Thinking of wallet addresses as some kind of outflow predictor is futile: wallets have much higher outflow sizes....volume has become the best predictor, low volume = less bad outflows.

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