Bitcoin ETF

Grayscale Bitcoin Trust

Ethereum Classic

The Grayscale Bitcoin Trust (GBTC) has recently experienced a notable decline in withdrawal volumes, reaching its lowest point in the past few days, according to data from BitMEX Research.&nbsp;
On February 23, GBTC recorded withdrawals of $44.2 million, marking the lowest daily volume since its transformation on January 11 from an over-the-counter product to an exchange-traded fund (ETF).
As reported earlier by TheCoinRise, Grayscale, a leading digital asset management firm,<a href="https://thecoinrise.com/grayscale-sells-off-2-14b-btc-in-dawn-of-spot-bitcoin-etf/" rel="noopener noreferrer nofollow"> sold close to $2.14 billion</a> (approximately 52,227 BTC) worth of BTC.
<h2 id="span-style-font-weight-400-grayscale-outflows-decline-span">Grayscale Outflows Decline</h2>
The trend in outflows is evident when considering the overall performance of GBTC in January. By the end of the month, total withdrawals<a href="https://twitter.com/BitMEXResearch/status/1761307758173851758" rel="noopener noreferrer nofollow"> amounted</a> to $5.64 billion, with a substantial $640 million leaving on January 22 alone.&nbsp;
However, February has seen a decline in outflows, totaling $1.8 billion so far. Since its inception, GBTC has witnessed a total withdrawal of $7.4 billion.
<h3 id="span-style-font-weight-400-btc-etfs-gaining-traction-span">BTC ETFs Gaining Traction</h3>
In contrast, other crypto funds have been gaining traction.<a href="https://thecoinrise.com/blackrock-fidelity-spot-btc-etfs-witness-biggest-debut-month-for-an-etf-in-30-years/" rel="noopener noreferrer nofollow"> BlackRock’s IBIT has accumulated</a> over $6.6 billion in investments since its launch, closely followed by Fidelity’s FBTC with over $4.7 billion in capital. The third position is secured by ARK 21Shares, attracting inflows of $1.4 billion over the same period.
Significant outflows from GBTC were anticipated, especially following the approval of the spot Bitcoin ETF by the<a href="https://thecoinrise.com/us-sec-grants-official-approval-for-a-spot-bitcoin-etf/" rel="noopener noreferrer nofollow"> Securities and Exchange Commission on January 10</a>. This development provided GBTC holders with the opportunity to convert and redeem their shares directly, a departure from the previous necessity of selling shares on the secondary market to exit positions.
<h2 id="span-style-font-weight-400-grayscale-and-others-continue-to-compete-span">Grayscale and Others Continue to Compete</h2>
Analysts suggest that investors have been rebalancing their portfolios and migrating towards Bitcoin ETFs with lower fees in recent weeks. Grayscale BTC ETF, with a 1.5% annual management fee, has faced competition from other issuers charging as little as 0.19%.
Despite the significant outflows, Grayscale’s fee structure may serve as a counterbalance. Nate Geraci, president of ETF Store, highlighted that “they can have assets chopped by like 90% and still make more than all of the other issuers combined,” emphasizing the resilience provided by the fee structure amidst changing market dynamics.
<h3 id="span-style-font-weight-400-sale-of-1-3b-gbtc-shares-span">Sale of $1.3B GBTC Shares</h3>
In addition to these challenges, Grayscale’s Bitcoin fund faces potential headwinds as bankrupt Genesis Global Holdco has been<a href="https://thecoinrise.com/genesis-to-sell-assets-worth-1-6b-held-in-grayscale-trusts/" rel="noopener noreferrer nofollow"> granted court permission to sell $1.3 billion in GBTC</a> shares to reimburse investors.
The firm holds $1.3 billion in Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
The post <a href="https://thecoinrise.com/grayscale-btc-etf-records-lowest-outflows-since-debut/" rel="noopener noreferrer nofollow">Grayscale BTC ETF Records Lowest Outflows Since Debut</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Grayscale BTC ETF Records Lowest Outflows Since Debut

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