No, Bitcoin ETFs Didn’t Lose $1.7 Billion in 24 Hours

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As a seasoned researcher with a penchant for the intricacies of the cryptocurrency market, today’s turn of events has certainly piqued my curiosity. The report by Lookonchain about the supposed massive outflow from Bitcoin ETFs initially sent ripples of apprehension through the community – or at least through my screen. However, upon closer inspection, it became apparent that this was not a cause for alarm but rather a case of misleading statistics.

As a seasoned investor with years of experience in the cryptocurrency market, today’s development in Bitcoin ETFs caught my attention. Based on the report by Lookonchain, it appears that there has been a significant outflow from these investment products, with approximately 26,823 BTC, equivalent to over $1.7 billion, leaving nine specific funds within the last 24 hours. This is an interesting and potentially concerning development given my own observations of market trends. I will be closely monitoring this situation as it unfolds to determine if it could indicate a shift in investor sentiment or behavior.

Based on the data from the report, while there were deposits totaling 1,138 BTC into BlackRock’s IBIT Bitcoin ETF, an astounding 27,753 BTC were withdrawn from Grayscale Bitcoin Trust. This substantial exit is indeed as impressive as it sounds.

In summary, most of Grayscale’s Bitcoin holdings were not transferred elsewhere but moved to the Grayscale Bitcoin Mini Trust, leading to a daily inflow of approximately 113 Bitcoins (worth around $7.48 million) for Bitcoin-related investment products on that specific day.

31st July Update:

— Lookonchain (@lookonchain) July 31, 2024

Lookonchain further corrected the error in the post.

What is Grayscale Bitcoin Mini Trust?

Introduced by Grayscale Investments in July 2024, we have the Grayscale Bitcoin Mini Trust – a scaled-down version of their initial Bitcoin Trust. Unlike many other cryptocurrency investment options, this Mini Trust follows Bitcoin’s price movement closely, providing a simpler and more direct investment strategy.

The Mini Trust is a new investment option that was derived from GBTC, and it offers 10% of its underlying Bitcoin holdings. This trust is designed for investors who want exposure to Bitcoin but prefer a smaller initial investment compared to GBTC. You can trade this trust on the NYSE Arca exchange, providing a regulated pathway for investing, although it operates outside the jurisdiction of the Investment Company Act, much like GBTC does.

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2024-07-31 19:09