Bitcoin steadies after Grayscale ETF outflows spark selloff

Bitcoin steadies as Grayscale ETF sees record $642.5M outflow amid investor exodus.

Bitcoin steadies after Grayscale ETF outflows spark selloff
Bitcoin BTC

Bitcoin steadied on Wednesday morning after a turbulent previous session that saw the cryptocurrency tumble amid record outflows from the newly converted Grayscale Bitcoin Trust ETF.

The world's largest digital asset by market cap settled overnight, trading at $62,969 by 08:45 GMT after plummeting from around $68,000 on Tuesday. Ethereum and XRP also found support, changing hands at $3,230 and $0.5942 respectively.

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Tuesday's bitcoin selloff was accompanied by a single-day record outflow of $642.5 million from Grayscale's Bitcoin Trust, according to data from BitMEX Research. The massive investor exodus accelerated asset losses by the fund since it transitioned into an exchange-traded fund (ETF) in early January.

Despite bitcoin's 50% price surge helping offset outflows, investors have withdrawn a staggering $12 billion from Grayscale's ETF since its launch. The fund's assets now stand at $27.2 billion, down from $29 billion on its first trading day.

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