Grayscale Bitcoin Trust Outflows Slow, Sparking Optimism Fund Has Stopped Massive Bitcoin Sales

Grayscale Bitcoin Trust (GBTC) withdrawals dropped to lowest level since converted to spot BTC ETF in January, sparking optimism fund will stop selling large amounts of Bitcoin.

In 3 months since converting to ETF, GBTC has lost over 300,000 BTC - nearly half its January holdings - despite inflows to competing funds.

Outflows appear partly due to FTX and Genesis bankruptcy estates liquidating over $2B in GBTC; also driven by GBTC's higher fees than competitors.

On-chain analysis suggests GBTC outflows are a natural phenomenon of long-term holders taking profits when Bitcoin breaks all-time highs.

GBTC once had $30B lead over competitors but now just $4B more than BlackRock’s iShares Bitcoin Trust.