GBTC has reported another $515 million in outflows on January 23, taking the total outflows to $3.4 billion since its conversion to spot ETF earlier this month. Nine other recently approved spot Bitcoin ETFs recorded a total of $249 million in inflows.

Bitcoin lost all of its gains since the approval of spot ETFs by the US SEC as it traded below $40,000. The largest cryptocurrency saw nearly $200 billion erased from its market cap this week. At the time of writing, Bitcoin is trading at $39,700.

GBTC OUTFLOWS MAYBE SLOWING DOWN

The surge in outflows from GBTC is linked to the activities of the now-defunct FTX crypto exchange, which purportedly offloaded approximately two-thirds of its 22.3 million GBTC shares during a three-day trading span.

FTX reportedly retains approximately 8 million shares, equivalent to about $281 million in value, yet to be liquidated.

However, Bloomberg ETF analyst Eric Balchunas noted that the latest figures show that the outflows from GBTC may be slowing down.

As per Grayscale’s website data, there are presently 600.5 million outstanding shares, representing a trust holding of 536,694.9 Bitcoin. Since January 10th, a total of 82,525 Bitcoin has exited the GBTC platform, CC15Capital data shows.

ANALYST SUGGESTS FURTHER PRICE CORRECTION

Bitfinex analyst told Cryptonews that since the BTC price has fallen and stayed below the $43,000 level, over half of the profits accumulated by short-term holders have been wiped out.

The analyst suggested that given these dynamics, a considerable price correction even further down from current levels across the market would not be surprising.