In an intriguing development within the cryptocurrency market, Lookonchain reported a substantial outflow from Bitcoin ETFs. Over the past 24 hours, 26,823 BTC, valued at over $1.7 billion, were withdrawn from nine investment products.
The report highlighted that despite an inflow of 1,138 BTC into BlackRock’s IBIT Bitcoin ETF, there was an outflow of 27,753 BTC from the Grayscale Bitcoin Trust, making the situation appear as a massive outflow. In reality, this significant movement was mainly due to a transfer within Grayscale’s products.
Nearly all of Grayscale’s BTC didn’t just leave the market but were transferred into the new Grayscale Bitcoin Mini Trust. Consequently, the total net inflow of Bitcoin-related investment products for the day was 113 BTC, equivalent to $7.48 million. Lookonchain later corrected this initial misinterpretation in their report.
Understanding the Grayscale Bitcoin Mini Trust
The Grayscale Bitcoin Mini Trust, launched by Grayscale Investments in July 2024, is a scaled-down version of the original Grayscale Bitcoin Trust (GBTC). This product directly tracks Bitcoin’s price, providing a straightforward investment approach.
The Mini Trust was created by distributing 10% of GBTC’s underlying Bitcoin, catering to investors seeking BTC exposure with a smaller initial investment compared to GBTC. It is traded on the NYSE Arca exchange, offering a regulated investment option, though it is not governed by the Investment Company Act, similar to its predecessor, GBTC.
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