Bitcoin Spot ETF Jitters Subside: Grayscale Outflows Drop To New Lows
26 Fevereiro 2024 - 11:00AM
NEWSBTC
Outflows from Grayscale’s Bitcoin Trust (GBTC) seem to be slowing
down, as shown by the trading activity of Bitcoin ETFs. This comes
as investor anxiety over Grayscale’s Spot ETF seems to finally be
subsiding, with the entire ETF cohort continuing to attract huge
trading volumes and rapid growth in assets under management. As a
result, the GBTC saw daily outflows drop steadily over the course
of the week to just $44.2 million on Friday, the lowest since spot
Bitcoin ETFs went live. Outflows Drop As Grayscale’s BTC ETF
Stabilizes After several weeks of elevated outflows totaling over
$7.44 billion, investors pulled just $436.2 million of Grayscale’s
Bitcoin Trust last week. Notably, the lowest daily outflow of $44.2
million came on the last day of the week. Related Reading: Solana
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Grayscale’s GBTC is undoubtedly the biggest Bitcoin ETF among its
cohort. This is because GBTC was launched in 2013 as a Bitcoin
trust available only in OTC markets., allowing it to grow over the
years as it was the only go-to for investors looking to dive into
the crypto industry. However, after a lengthy regulatory procedure,
the SEC finally approved GBTC’s conversion into a Spot Bitcoin ETF.
Consequently, Grayscale’s new Bitcoin ETF went live on January 11,
along with nine other recently approved ETFs. GBTC held
around $27 billion worth of BTC assets when it first began trading
as an exchange-traded fund (ETF). Surprisingly, Grayscale’s
conversion into an ETF came along with a vast amount of withdrawals
from investors, and by the end of January, GBTC had witnessed $5.55
billion worth of withdrawals. Many analysts have attributed
Grayscale’s high management fees (1.5%) to the outflows. During
this period, other Bitcoin ETFs continued to attract new money.
BlackRock’s iShares Bitcoin Trust (IBIT) now has over $6.64 billion
worth of BTC in its ETF, followed by the Fidelity Wise Origin
Bitcoin Fund (FBTC) with $4.73 billion. What’s Next For Grayscale’s
Bitcoin ETF? While last week’s outflow data is an encouraging sign
for Grayscale and the wider ETF market, outflows could continue in
the coming weeks. Bankrupt crypto lending firm Genesis recently
received court approval to sell its $1.3 billion worth of GBTC in
order to repay its creditors. Related Reading: Crypto
Analysts Are Giga-Bullish On XRP Price, Set Multiple Price Targets
The prospect of a liquidation of such gravity has propelled
concerns amongst investors of the potential downward implications
on the price of BTC. However, many others remain optimistic.
According to a report by crypto exchange Coinbase, full liquidation
would have a neutral impact on the market as the majority of funds
are expected to remain in the crypto ecosystem. At the time of
writing, Bitcoin was trading at $51,300, while Grayscale’s GBTC now
had $22.7 billion worth of assets under management. BTC price at
$51,200 | Source: BTCUSD on Tradingview.com Featured image from
Vegavid Technology, chart from Tradingview.com
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