Outflows of GBTC Fall 70% from Their Peak as Bitcoin Exchanges Dump BTC


According to research, Bitcoin ETFs – including GBTC – might soon start to see net inflows as exchanges’ BTC balances return to their declining trend.

January withdrawals from bitcoin exchanges are undermining the negative price predictions for bitcoin.

Updates from on-chain analytics company Glassnode verify that coins have been moving off of exchanges even with a 20% decline in the price of BTC relative to USD.

This trend indicates a resilience in investor sentiment towards Bitcoin despite short-term price fluctuations.

Additionally, the diminishing exchange balances coupled with the introduction of U.S. spot Bitcoin exchange-traded funds suggest a growing institutional confidence in the long-term value proposition of Bitcoin.

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Data: Panic over Bitcoin ETF is abating

On-chain monitoring indicates that the current pressures on the price of bitcoin have not diminished investor enthusiasm for the cryptocurrency.

Since the introduction of the first U.S. spot Bitcoin exchange-traded funds (ETFs), outflows from Coinbase, a U.S. exchange, have regularly exceeded 10,000 BTC every day, according to Glassnode.

January withdrawals from bitcoin exchanges are undermining the negative price predictions for bitcoin,” states on-chain analytics company Glassnode, as data suggests a shift towards net inflows for Bitcoin ETFs, including GBTC.

Even though balance data indicates the impact of matching inflows, a trend is beginning to emerge in the second half of the month: outflows and inflows are becoming more evenly distributed, indicating a reduction in the volatility observed following the Jan. 11 ETF debut.

Bitcoin netflows for Coinbase. Source: Glassnode

The BTC holdings on exchanges had been increasing during January; they only started to decline on January 23.

Since then, 7,400 BTC ($321 million) have been removed from the trading sites that Glassnode monitors.

GBTC is moving closer to “flippening” flow

ETF flows are also rising in favour of Bitcoin bulls at the same time.

The Grayscale Bitcoin Trust (GBTC) used to transmit over $700 million worth of bitcoin to Coinbase every day, but as of late, its daily outflows have come to less than $200 million.

In Bitcoin, outflows on January 25 totaled 24,000 BTC, but on January 29, there were little over 6,000 BTC.

GBTC: Grayscale Bitcoin Trust netflows (screenshot). Source: CoinGlass

Financial analyst Tedtalksmacro forecast an upcoming flip for the spot ETFs, going from net outflows to net inflows, based on his analysis of GBTC movements using data from statistics repository CoinGlass.

In his most recent YouTube video, he stated, “Once we start to see green on this chart, what narrative do you have to sell other than some unknown event that we don’t know about now.”

The bearishness that has accompanied GBTC outflows in recent weeks, according to Tedtalksmacro, has been “overblown.”

Regarding global ETF offerings, he predicted that there will be “$26 billion in on-chain holdings in these BTC ETFs, and that number is going to keep going higher and higher and higher as people get more comfortable with this asset class.”

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Bitcoin price

Financial analyst Tedtalksmacro, drawing insights from GBTC movements and data from the statistics repository CoinGlass, anticipates a significant shift in spot ETF dynamics.

He forecasts a transition from net outflows to net inflows, signaling a potential reversal in market sentiment.

In his recent YouTube video, Tedtalksmacro highlights the significance of observing positive trends in the chart, questioning the rationale for selling assets amidst such developments.

Tedtalksmacro dismisses the prevalent bearish sentiment surrounding GBTC outflows in recent weeks as exaggerated.

He suggests that market participants may have overreacted to these movements, potentially overlooking broader market trends and dynamics.

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Moreover, Tedtalksmacro projects substantial growth in global ETF offerings, predicting a staggering $26 billion in on-chain holdings within BTC ETFs.

This projection underscores a growing acceptance and adoption of Bitcoin as an asset class, with increasing investor confidence driving continued inflows into ETF products.

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Written by
Rock Buivy
Over the years, I've dedicated countless hours to researching and analyzing various crypto betting platforms, understanding their features, strengths, and weaknesses. This knowledge has allowed me to produce in-depth, well-rounded reviews that help users make informed decisions when it comes to choosing the right platform for their needs.