Despite ongoing outflows, Grayscale's Bitcoin Trust (GBTC) appears to be bleeding slower.
Despite ongoing outflows, Grayscale's Bitcoin Trust (GBTC) appears to be bleeding slower. Withdrawals have reached their lowest point since its conversion to an ETF in January, with daily amounts dropping to $44.2 million on February 23.
This slowdown comes after significant outflows earlier in the year. By the end of January, GBTC had witnessed over $5.64 billion in withdrawals, including a single-day exit of $640 million. So far in February, outflows have totaled around $1.8 billion, bringing the overall figure since inception to $7.4 billion.
However, these outflows seem to be favoring competing Bitcoin ETFs. BlackRock's IBIT, for instance, has attracted over $6.6 billion in investments since its launch, followed by Fidelity's FBTC with $4.7 billion.
The arrival of spot Bitcoin ETFs offered existing GBTC holders the option to convert and redeem their shares, which is seen as a key reason for the initial outflow surge. Additionally, the lower fees of competing ETFs, some charging as little as 0.19% compared to GBTC's 1.5%, have enticed investors to rebalance their portfolios.
The recent court approval for bankrupt crypto firm Genesis to sell $1.3 billion in GBTC shares to repay creditors adds another layer of complexity. While the future trajectory of GBTC remains uncertain, the slowed outflow pace suggests a potential stabilization.
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