The slowdown in the outflow of Grayscale GBTC funds may help alleviate Bitcoin's consecutive two-week plunge

ChainCatcher news, according to Bloomberg, since becoming an exchange-traded fund (ETF) on January 11, the Grayscale Bitcoin Trust (GBTC) has seen outflows of approximately $4.8 billion. Bitcoin has dropped about 20% during the same period. The daily outflow rate of GBTC peaked at $641 million on January 22, but fell to $394 million by January 25. Fundstrat Global Advisors Chief Cryptocurrency Strategist Sean Farrell wrote in a report: "We are starting to see the redemption volume of GBTC gradually decrease, and of course, we need a few more days of follow-up, but merely slowing the outflow of assets under management will have a huge positive impact on the market."

Additionally, nine other spot Bitcoin ETFs have attracted over $5 billion in funds, while the net inflow for the ten spot ETFs (including Grayscale) is approximately $574 million. JPMorgan strategists, including Nikolaos Panigirtzoglou, wrote in a report: "Last year, investors took profits on previous GBTC investments at prices below net asset value, which may have been a major driver behind the Bitcoin pullback. This profit-taking should largely be over, thereby limiting any downside for Bitcoin."