MEMETOON

Grayscale&#39;s &#34;Greyscale Bitcoin Trust (GBTC)&#34; led the fall in BTC prices after the approval of the Bitcoin (BTC) Spot Exchange Fund (ETF). Analysts say that along with GBTC arbitrage transactions, the sale of GBTC shares by FTX, a bankrupt virtual asset exchange, and the gap in fees between management companies also affected. According to the Coin Telegraph on Monday (local time), Bitfinex, a virtual asset exchange, published the report. GBTC, which was converted from a trust to an ETF on May 10, has lowered BTC price from trading at around 48,700 dollars to around 38,600 dollars. The report cited a high discount rate compared to the fund&#39;s net asset value (NAV) as a major driver of the GBTC sale over the past few weeks. The GBTC discount rate refers to the difference in price between the spot BTC, the underlying asset, and the market sale price of GBTC. If the discount rate is 5%, it means that the GBTC price is 5% lower than BTC. &#34;The current discount rate of GBTC has mostly completed arbitrage trading to reach 0%,&#34; said Jag Kunner, head of Bitfinex&#39;s derivatives division. &#34;This was the result of investors waiting the most for the launch of BTC spot ETFs.&#34; The decrease in the GBTC discount rate means that demand for GBTC has increased as the number of cases of exchanging BTC and GBTC has increased. Investors use arbitrage trading to take advantage of the fact that price premiums occur when demand is high and price discounts occur when demand is low. GBTC has had a net outflow of about $4.3 billion (about 5.734 trillion won) since the conversion of BTC spot ETF on the 16th. BlackRock&#39;s iShares Bitcoin Trust (IBIT) recorded a net inflow of more than $2 billion (about 2.667 trillion won). However, GBTC&#39;s operating asset (AUM) is still known to be the largest BTC spot ETF at around $24 billion (about 32 trillion won). The report also noted that the drop in BTC prices was due to the sale of a significant number of GBTC shares held by the bankrupt virtual asset exchange FTX. According to the report, FTX liquidated 22 million GBTC shares worth 1 billion dollars. It added that the difference in commission fees between BTC spot ETF operators also affected BTC downward pressure. Currently, Grayscale GBTC&#39;s operating commission is around 1.5%. The commission is expensive considering that Invesco and Galaxy Digital&#39;s &#34;Invesco Galaxy Bitcoin ETF (BTCO)&#34; adjusted its fee of 0.39% to 0.25% on the 30th. In addition, Fidelity&#39;s &#34;Fidelity Wise Origin Bitcoin Trust (FBTC),&#34; Valkyrie&#39;s &#34;Valkyrie Bitcoin Fund (BRRR), BlackRock&#39;s &#34;IShares Bitcoin Trust (IBIT),&#34; and VanEck&#39;s &#34;HODL&#34; also set the commission at 0.25%, while Franklin Templeton&#39;s &#34;Franklin Bitcoin ETF (EZBC)&#34; is the lowest among the operators at 0.19%. &#34;Due to the difference in fees, investors moved funds from GBTC to low-cost BTC spot ETF options,&#34; Cooner said. &#34;There were cases where other ETFs exempted fees for a certain period of time, so the movement of funds was more active.&#34; As of this day, the capital movement between BTC spot ETFs is gradually stabilizing. &#34;Daily outflows are decreasing every day, but they are still high at an average of about 450 million dollars per day,&#34; Cooner said, adding, &#34;As long as there is no change in the commission structure, GBTC outflows will continue.&#34;Source : https://www.sedaily.com/NewsView/2D4AR9L1NI Twitter link : https://twitter.com/memetoonk/status/1753084930979143781

"GBTC Leaks Shake the BTC Market... Impact of FTX Liquidation and Fees"

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