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No, Bitcoin ETFs Didn't Lose $1.7 Billion in 24 Hours

Published 08/01/2024, 12:05 AM
Updated 08/01/2024, 04:15 AM
© Reuters.  No, Bitcoin ETFs Didn\'t Lose $1.7 Billion in 24 Hours

U.Today - An interesting situation happend today in the world of cryptocurrency market statistics. Lookonchain reported a huge outflow from Bitcoin ETFs, saying that in the last 24 hours, 26,823 BTC, equivalent to more than $1.7 billion, have flowed out of nine investment products.

According to the report, despite inflows of 1,138 BTC into BlackRock's IBIT Bitcoin ETF, 27,753 BTC flowed out of Grayscale Bitcoin Trust, making it look like such a huge outflow. It really was.

However, the fact is that almost all of Grayscale's BTCs have not just flowed somewhere, but into the new Grayscale Bitcoin Mini Trust. As a result, the total net inflow of Bitcoin-related investment products for the day in question was 113 BTC, or $7.48 million.

Lookonchain further corrected the error in the post.

What is Grayscale Bitcoin Mini Trust?

The Grayscale Bitcoin Mini Trust was introduced by Grayscale Investments in July 2024. This product is essentially a smaller variant of the original Grayscale Bitcoin Trust (GBTC). Unlike some other crypto investment products, the Mini Trust directly tracks Bitcoin's price, offering a more straightforward investment approach.

The Mini Trust is a spinoff from GBTC, created by distributing 10% of GBTC's underlying Bitcoin. It targets investors seeking BTC exposure with a smaller initial investment compared to GBTC. The trust trades on the NYSE Arca exchange, offering a regulated avenue for investors, although it is not governed by the Investment Company Act, similar to GBTC.

This content was originally published on U.Today

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