Bitcoin ETF Grayscale is having a dramatic day; BlackRock comes to the rescue

Bitcoin (BTC) spot exchange-traded funds (ETFs) had a remarkable day. After several exceptionally good days, Grayscale’s GBTC fund dampened the market yesterday. Since its inception on January 11, money has flowed out of the fund daily, but yesterday saw the second-highest outflow. At the same time, BlackRock achieved record inflows, so the ETFs still had a positive day overall.

Notable Bitcoin ETF flows at Grayscale and BlackRock

Data from Farside Investors shows that $598.9 million flowed out of Grayscale’s GBTC yesterday. This is the second highest net outflow since its introduction. The record is $640.5 million and was achieved on January 22nd.

Before mass approval from the USA Securities and Exchange Commission (SEC) GBTC was already alive. It was a closed-end trust fund, but converted to a spot ETF on January 11th.

Over the past month, daily outflows of the hundreds of millions of dollars withdrawn from the fund each day in the first three weeks had slowed sharply.

Yesterday’s major capital flight may be due to bankrupt crypto lending platform Genesis, which received the green light from the court to float $1.6 billion worth of GBTC shares on the market two weeks ago.

However, it could also be that big players are simply selling their shares to benefit from the huge rally that the Bitcoin price has made in the last few days.

“Two steps forward, one step back,” like that wrote Bloomberg ETF analyst Eric Balchunas on the social media platform

Despite GBTC’s massive outflows, all funds collectively ended with $92.3 million in additional capital than the previous day. BlackRock played a key role with a record inflow of $603.9 million.

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$4.7 billion Bitcoin ETF trading volume

Over the past few days, the stock market has seen a significant increase in trading activity. Yesterday was another day that stood out in terms of stock market trading.

Yesterday saw the second highest combined trading volume of $4.7 billion each.

“That would be a record, exceeding the first-day total of $4.6 billion but well below yesterday’s stunning record of $7.7 billion,” wrote Balchunas colleague James Seyffart. on X

As usual, BlackRock came out on top with a volume of around $1.9 billion.

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