Amazing Bitcoin ETF Lost IDR 27 Trillion In 24 Hours, Here's The Clarification!

Amazing Bitcoin ETF lost IDR 27 trillion in 24 hours (Photo; Doc. Coinbulteni)

JAKARTA - The crypto world was again shocked by reports that Bitcoin-based Exchange Trade Funds (ETF) products experienced an outflow of US$1.7 billion (around Rp27 trillion) within 24 hours. However, after further investigation, the report turned out to contain misunderstandings that needed to be straightened out.

Quoted from U.Today, an initial report from Lookonchain stated that 26,823 BTC, which is equivalent to more than 1.7 billion US Dollars, has been out of nine crypto investment products a day. Although there is an inflow of 1,138 BTC into BlackRock's Bitcoin ETF, there is a much larger outflow than the Grayscale Bitcoin Trust (GBTC), which is 27,753 BTC. At first glance, this appears to be a significant decline in the Bitcoin market.

However, in fact, almost all BTC coming out of GBTC is not really vanishing' from the market. The BTC was moved to a new product introduced by Grayscale, namely the Grayscale Bitcoin Mini Trust. As a result, the total net inflow of investment products associated with Bitcoin that day actually reached 113 BTC or equivalent to 7.48 million US Dollars (around Rp121 billion).

Getting To Know Grayscale Bitcoin Mini Trust

Grayscale Bitcoin Mini Trust is a new product launched by Grayscale Investments in July 2024. This product is a smaller variant of Grayscale Bitcoin Trust (GBTC) which is already popular. Unlike some other crypto investment products, this Mini Trust directly tracks the price of Bitcoin, offering a simpler and more transparent investment approach.

This Mini Trust is a spin-off of a GBTC created by distributing 10% of Bitcoin on GBTC basis. This product targets investors who want to get exposure to Bitcoin with smaller initial investments compared to GBTC. The Mini Trust is trading on the NYSE Arca exchange, providing a regular investment path for investors, although not regulated by the Investment Company Act, just like GBTC.

This incident shows how important a clear understanding of data and information in the crypto market is, especially given the volatility and complexity that accompanies it. This clarification from Lookonchain helps maintain information integrity in the crypto world which is often met with speculation and uncertainty.