Grayscale Bitcoin ETF Bleeds: Traders Make $579 Million Run On The Fund
18 January 2024 - 12:00AM
NEWSBTC
Grayscale, an American digital asset management company, has
witnessed a staggering amount of outflows in its Spot Bitcoin ETF,
Grayscale Bitcoin Trust (GBTC). Analysts speculate that the
outflows may be linked to several factors, including high trading
fees and accounting irregularities. Grayscale Experiences
Massive Outflows After successfully securing approval for its Spot
Bitcoin ETF against the United States Securities and Exchange
Commission (SEC), Grayscale experienced steady inflows in its GBTC.
However, recent reports suggest that the company’s gains may have
been premature, as Grayscale’s GBTC recently experienced a
significant outflow of approximately $594 million. According
to James Seyffart, a Bloomberg Analyst on X (formerly Twitter),
Grayscale has encountered total net outflows of $1.173 billion for
its Spot Bitcoin ETF. Related Reading: Institutional Inflows
Into XRP Surges 244% Amid ETF Speculation Seyffart presented a
screenshot of a spreadsheet detailing the cumulative inflows and
trading volumes witnessed by various Spot btc ETF companies,
including Bitwise, ARK/21 Shares, VanEck, and more. The analyst
revealed that while many of these companies saw large amounts of
inflows, the gains were not sufficient enough to offset Grayscale’s
substantial outflow of almost $600 million. Seyffart
suggested that Grayscale’s lagging outflows may be a result of T+1
accounting and settlement processes causing outflows from previous
days to be reflected in recent data. On the other hand, an X user
has published a scathing critique on Grayscale, stating that the
crypto asset management company may continue to experience a
massive exodus of shareholders due to its exorbitant ETF
fees. Several investors may have shifted towards more
affordable Spot Bitcoin ETFs, as GBTC’s ETF has an expense ratio of
1.5%, making it the most expensive Spot Bitcoin ETF in the United
States. When asked by an X user why there were heavy outflows
in Grayscale’s Spot Bitcoin ETF, Senior Bloomberg Analyst Eric
Balchunas stated: “A lot of traders came in to play the discount
closing so they left to take profits, there are also captive
average investors who may have decided to stomach the tax hit in
order to flee the 1.5% fee, I’d expect more over time.” BTC price
at $42,600 | Source: BTUCSD on Tradingview.com Spot Bitcoin ETF
Records $10 Billion In Trading Volume The crypto market’s recent
response to the increased levels of trading activities in Spot
Bitcoin ETFs has been remarkably positive. Seyffart shared in
a post on X that Spot Bitcoin ETFs have achieved an impressive
trading volume of almost $10 billion in just three days. This
massive trading activity underscores the growing interest and
positive shift in investor sentiment regarding Spot BTC ETFs.
Related Reading: Crypto Community Raises Alarm Over Coinbase’s
Dominance Of Bitcoin Held In Spot ETFs In a similar vein, Balchunas
disclosed that several recently launched Spot Bitcoin ETFs had seen
significant inflows totalling $1.4 billion. Leading the group,
iShares Bitcoin Trust (IBIT), the Spot Bitcoin ETF of BlackRock,
has secured the top spot with half a billion in inflows, followed
by Fidelity in second place ahead of other ETFs. According to
Balchunas, all 500 ETFs introduced in 2023 have accumulated
approximately $450 million in volume, indicating a promising upward
trend for the Spot Bitcoin ETF market. Featured image from NewsBTC,
chart from Tradingview.com
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024