Bitcoin sees 3% correction as GBTC investors dump nearly $600M

Bitcoin (BTC) fell over 3% from its 24-hour high as investors in Grayscale’s spot Bitcoin exchange-traded fund (ETF) dumped $598.9 million from the fund on Feb. 29 — its second-largest net outflow on record. 

Bitcoin hit a 24-hour high of $63,585 early on Feb. 29 and has since dropped around 3.3% to just under $61,500, according to Cointelegraph Markets Pro.

It comes as the Grayscale Bitcoin Trust (GBTC) — the asset managers recently converted ETF — saw daily net outflows close at $600 million on Feb. 29, per preliminary Farside Investor data.

Daily Bitcoin ETF flows with incomplete Feb. 29 data highlighted green. Source: Farside Investors

It’s behind only the record $640.5 million net outflow day the ETF had on Jan. 22.

“That’s a lot,” Bloomberg senior ETF analyst Eric Balchunas wrote in a Feb. 29 X post commenting on the day’s outflows.

The near-record outflows come only days after GBTC posted a historic low daily net outflow of $22.4 million on Feb. 26.

“Two steps forward one step back,” Balchunas added.

Source: Eric Balchunas/X

On Wednesday, Feb. 28, the ten United States spot Bitcoin ETFs saw a combined record-high net inflow of $673.4 million as Bitcoin touched an over two-year high of $64,000.

The latest GBTC outflows could put a dent in the day’s  inflows. Full inflow data across the other nine ETFs is not currently available, though Farside’s Feb. 29 data already shows Fidelity’s Bitcoin ETF — one of the top three largest funds by assets — as generating just $44.8 million net inflows, its fourth-lowest day of inflows.

Meanwhile, in a recent note to investors, JPMorgan analysts warn the price of Bitcoin may fall after the “halving euphoria” dissipates.

Bitcoin’s April-slated halving event — which many believe could push its price higher — could have the opposite effect and see it approach $42,000 instead, the analysts noted in a Feb. 29 note seen by Bloomberg.

Related: Bitcoin ETFs set for ‘even bigger wave’ in next few months: Bitwise

The Bitcoin halving event slashes the Bitcoin block reward from 6.25 BTC to 3.125 BTC and is a historic catalyst for Bitcoin price…

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