No, Bitcoin ETFs Didn’t Experience a $1.7 Billion Loss in 24 Hours

An intriguing event occurred today in the cryptocurrency market. Lookonchain reported a significant outflow from exchange-traded funds (ETFs), noting that in the past 24 hours, a total of 26,823 BTC, valued at over $1.7 billion, left nine different investment products.

The report highlighted that, despite an inflow of 1,138 BTC into BlackRock’s IBIT Bitcoin ETF, a staggering 27,753 BTC exited the Grayscale Bitcoin Trust, contributing to the large outflow figure. This outflow is indeed substantial.

However, it’s important to clarify that nearly all of the Bitcoin from Grayscale has not simply disappeared but has been redirected into the new Grayscale Bitcoin Mini Trust. Consequently, the net total of inflows for Bitcoin-related investment products on that day was a modest 113 BTC, approximately $7.48 million.

Additionally, Lookonchain has amended the initial report for accuracy.

### What is Grayscale Bitcoin Mini Trust?

The Grayscale Bitcoin Mini Trust was launched by Grayscale Investments in July 2024. This product serves as a condensed version of the original Grayscale Bitcoin Trust (GBTC). Unlike various other cryptocurrency investment offerings, the Mini Trust directly mirrors Bitcoin’s market price, providing a more straightforward investment method.

The Mini Trust is a derivative of GBTC, established by allocating 10% of GBTC’s underlying Bitcoin holdings. It aims to provide investors with an opportunity to gain exposure to Bitcoin with a lower entry cost compared to GBTC. This trust is traded on the NYSE Arca exchange, offering a regulated method for investors, although it is not subject to the Investment Company Act, much like its predecessor GBTC.