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26 sats \ 1 reply \ @Bitman 19 Jan 2024 freebie \ on: ELI5: if Bitcoin ETFs are seeing net inflows, why is price dumping? bitcoin

Not an ELI5, sorry, but you're probably a little older than five...

Especially take note the bit at the end in italics.

A neater explanation involves Grayscale Bitcoin Trust, a publicly listed bitcoin warehouse that led the lobbying for US spot ETFs to be legalised. GBTC had since 2017 been operating a bitcoin lobster pot: anyone with bitcoins could give them to Grayscale Investments in exchange for OTC-traded shares in the trust, but there was no way to get the bitcoins back.
GBTC last week converted to an ETF, giving its backers their first opportunity to reclaim the $28bn or thereabouts of bitcoin it had collected. And in the four days following spot ETF approval GBTC redemptions have totalled more than $1.6bn.

It’s also possible, however, that some GBTC shareholders just want to cash out. And though it’s silly to draw conclusions from only four days of data, it’s interesting that GBTC redemptions on Tuesday exceeded total inflows for all the other US spot ETFs.

https://archive.md/sVdrA

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1 sat \ 0 replies \ @bitcoin_rationalist OP 19 Jan 2024

I get that people are selling GBTC but what I don’t understand is that the ETFs are seeing net inflows even with the outflows from GBTC, so this should be positive for price, no?

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