Bitcoin ETF

Grayscale Bitcoin Trust

<p>The Grayscale Bitcoin exchange-traded fund (ETF) has continued to witness massive outflows from the fund’s holdings. According to <a href="https://farside.co.uk/?p=997" rel="noopener noreferrer nofollow" target="_blank">data</a>, the fund saw an outflow of over $166 million and about 2,500 Bitcoin from its holdings. Since the approval of the fund on January 11, it has now witnessed outflows of more than $16 billion.</p>
<h2 class="wp-block-heading" id="grayscale-bitcoin-etf-outflows-continue">Grayscale Bitcoin ETF outflows continue</h2>
<p>The outflows from the fund show no signs of slowing down with GBTC registering outflows of $75 million to $300 million since the start of April. Consequently, there has been little to show that investors are active in the Bitcoin ETF market as inflows have been increasingly low.</p>
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   <p lang="en" dir="ltr">Inflows to the 9 new bitcoin ETFs, ex. GBTC, were just $572 million this week, the worst week to date. <a href="https://t.co/pMzS5gH26I" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/pMzS5gH26I</a></p>— Joe Consorti ⚡ (@JoeConsorti) <a href="https://twitter.com/JoeConsorti/status/1778949597718519975?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">April 13, 2024</a>
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<p>GBTC registered a combined weekly outflow of $767 million this week, adding to the overall negative flow in the entire Bitcoin ETF ecosystem. BlackRock has experienced a considerable amount of support as its IBIT Bitcoin ETF’s asset under management recently exceeded $15 billion. With this feat, it has closed the with the Grayscale Bitcoin ETF. Notably, a huge portion of outflows from GBTC are being moved into the IBIT Bitcoin ETF.</p>
<h2 class="wp-block-heading" id="blackrock-etf-gains-momentum-amid-gbtc-outflows">BlackRock ETF gains momentum amid GBTC outflows</h2>
<p>During the week, Grayscale CEO Michael Sonnenshein <a href="https://www.cryptopolitan.com/grayscale-ceo-update-bitcoin-etf-outflows/" data-type="post" data-id="509348" rel="noopener noreferrer nofollow">mentioned</a> that he feels that outflows from the Grayscale Bitcoin Trust might be reaching an equilibrium. His statement signaled that there was some sort of optimism on the part of traders and investors in the Bitcoin market. However, the recent data shows that things are far from his prediction.</p>
<p>The GBTC fund charges a high management fee and this has been noted as one of the reasons for the massive outflows. Despite talks about a likely cut, Sonnenshein is hesitant to slash the fees despite losing most of the outflows to competitors. GBTC charges a 1.5% management fee, with other Bitcoin ETFs charging an average fee of 0.30%. He noted that there is always excitement in the market when new products enter the space but it fades as another new product enters the space.</p>
<p>The data showed that GBTC saw an outflow of $17.5 million on April 10, a decrease of about $154 million from the previous day. Over the last four months, the fund has seen an average outflow of $257 million, with the lowest coming on Feb 26 where it saw an outflow of $22.4 million.</p>

Grayscale Bitcoin ETF records massive outflows despite CEO remarks

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