Bitcoin ETF records mega outflow of 100,000 BTC, we know this

Grayscale, one of the largest Bitcoin ETF managers, is seeing massive outflows. It was previously pointed out that this is one of the main reasons why the Bitcoin (BTC) price is currently having such a difficult time. But how much BTC is that exactly? Arkham Intelligence makes this clear; These are gigantic amounts of money.

What is the difference between investing in Bitcoin through an ETF or a crypto exchange?

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Bitcoin investors are flocking to the Grayscale emergency exit

Grayscale's GBTC fund was among the funds approved as an ETF. However, GBTC existed long before this news broke. Not everyone could invest in it, only accredited investors.

But with GBTC officially an ETF, the gates appear to be open. The fund is seeing a huge outflow, partly due to bankrupt crypto exchange FTX, which appears to be liquidating its position in the fund. But the fact that the fund's costs are many times higher than the competition is also causing many GBTC investors to flee towards the emergency exit.

GBTC currently manages approximately 537,000 Bitcoins. According to Grayscale's official website, that's about 100,000 BTC less since January 11th. However, Grayscale has so far sent 113,000 Bitcoins to Coinbase Prime, according to Arkham Intelligence, which monitors transaction flows on the Bitcoin network. It is assumed that these are often cryptocurrencies that will be sold at some point.

Important note for Bitcoin transactions

If you want to keep an eye on Grayscale's wallets yourself, Arkham gives you an important warning. Not all Bitcoins that leave Grayscale's wallets go to Coinbase. Some are also investing in new wallets to keep Bitcoins as safe as possible.

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Does this mean that Bitcoin ETFs have been a flop so far? Certainly not. Recently, the latest crypto news said that the exchange funds attracted a large amount of BTC in their first week. This will come in part from the Grayscale fund as investors look for the cheapest way to invest in Bitcoin via an ETF. But there also seems to be a lot of new capital through the new option!


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