Outflows from the Grayscale Bitcoin Trust ETF significantly impacted Bitcoin’s recent market price correction.
A new market report from Bitfinex suggests that a sizable sell-off of Grayscale Bitcoin Trust ETF shares, partly driven by bankrupt exchange FTX, significantly impacted Bitcoin’s recent drop in value in January 2024.
According to the update from Bitfinex Alpha, the realization of profits following Grayscale’s successful conversion of its GBTC trust to an exchange-traded fund (ETF) was a significant influence on the marketwide correction that took BTC from $48,700 to $38,600 in a matter of days.
The report highlights $4.3 billion outflows following GBTC’s conversion to a spot Bitcoin ETF on Jan. 16. Conversely, the highest net inflows for an individual spot Bitcoin ETF were to BlackRock’s iShares Bitcoin Trust, attracting $1.82 billion.
