Bitcoin ETF

Bitcoin

Grayscale Bitcoin Trust

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/grayscales-bitcoin-trust-sees-reduced-outflows-as-market-adjusts" rel="noopener noreferrer nofollow">Grayscale’s Bitcoin Trust Sees Reduced Outflows as Market Adjusts</a><br></p>
<p style="text-align: justify">Grayscale, a prominent crypto asset manager, is witnessing a decline in the rate of capital exiting its <a href="https://en.bitcoinhaber.net/south-korean-brokerages-suspend-spot-bitcoin-etf-services" rel="noopener noreferrer nofollow">Bitcoin</a> ETF fund. The slowdown suggests investors may still be interested in the fund despite prior large-scale withdrawals. Since transitioning to a spot Bitcoin ETF, the Grayscale Bitcoin Trust (GBTC) has experienced a total outflow of $7 billion as of February 16, with most occurring in January.</p>
<h2 id="investor-sentiment-and-competitive-fees">Investor Sentiment and Competitive Fees</h2>
<p style="text-align: justify">Although the dip in outflows indicates a change in investor sentiment, market experts, including ETF Store President Nate Geraci, caution that further sales may be imminent. January departures amounted to $5.64 billion, while February’s figure stands considerably lower at $1.37 billion. Jim Bianco of Bianco Research attributes much of the activity to a shift toward newer, lower-fee spot Bitcoin ETFs.</p>
<p style="text-align: justify">These fresh ETFs have significantly slashed fees to as little as 0 to 12 basis points, a stark contrast to Grayscale’s 150 basis points. The competitive pricing is drawing investors away from GBTC, seeking cost-effective investment vehicles.</p>
<h2 id="prospects-for-grayscale-and-the-wider-market">Prospects for Grayscale and the Wider Market</h2>
<p style="text-align: justify">The market dynamics shifted when BlackRock entered the space with a spot ETF in June 2023, leading to GBTC trading at steep discounts relative to Bitcoin’s market value. This discount peaked at around 44%, offering an attractive arbitrage opportunity for investors. Geraci projects that asset sales will persist, noting Grayscale’s potential to remain lucrative despite substantial asset reductions.</p>
<p style="text-align: justify">Grayscale may introduce a new, lower-priced version of its Bitcoin ETF, which could trigger additional sales. The possibility is reinforced by a recent court decision allowing Genesis, a bankrupt crypto lending entity, to offload some of its Grayscale investments. Genesis holds stakes in GBTC and other Grayscale trusts worth approximately $1.6 billion.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/grayscales-bitcoin-trust-sees-reduced-outflows-as-market-adjusts" rel="noopener noreferrer nofollow">Grayscale’s Bitcoin Trust Sees Reduced Outflows as Market Adjusts</a></h5>

Grayscale’s Bitcoin Trust Sees Reduced Outflows as Market Adjusts

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