Grayscale's Bitcoin Trust (GBTC) experienced significant outflows of $14 billion since its January 2024 launch.

If redemptions continue at the current rate, GBTC could deplete its Bitcoin reserves in 96 days.

The outflows are driven by profit-taking, arbitrage strategies, and a high fee structure.

Grayscale plans to counteract outflows by launching a mini fund and reducing fees from 1.5%.

BlackRock's Bitcoin ETF (IBIT) showed resilience with minimal net inflows, indicating sustained institutional interest.

Bitcoin's price recovery has triggered a short squeeze, which may temporarily inflate prices further.

The broader crypto market is in decline, with notable price drops in Ethereum (ETH) and Solana (SOL).

These developments are poised to impact the cryptocurrency market's dynamics and GBTC's future.