Bloomberg Data: Grayscale Bitcoin Trust (GBTC) Saw $7.4 Billion in Outflows over First 31 Trading Days
The Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin exchange-traded fund (ETF), has seen continued outflows for an entire month.
According to Bloomberg data , GBTC witnessed $7.4 billion exiting the fund across 31 consecutive trading days as of Monday.
This stands in stark contrast to the other nine newly launched spot Bitcoin ETFs, which have all experienced net inflows since their inception.
Several factors have contributed to Grayscale’s continued outflows.
While GBTC remains the largest and most actively traded Bitcoin ETF, its 1.5% management fee makes it the most expensive offering in the market.
In contrast, the majority of its competitors charge less than 0.3%. Additionally, bankrupt estates, including Genesis Global Holdco LLC, have sought to offload their GBTC holdings.
Even considering these factors, the consistency of GBTC’s outflows surprises industry observers.
Vident Asset Management highlighted that while outflows were expected due to long-term holders waiting for the fund’s conversion, the duration and consistency of the outflows are noteworthy.
“Does it go to 60 days? I don’t think so, but then again, I’m surprised to see it got to thirty,” Amrita Nandakumar, President of Vident Asset Management, said.
It is worth noting that outflows have slowed in recent days, with only $22 million leaving the fund on Monday compared to the peak of $640 million in January.
The Bitcoin ETF flow data for 26th Feb 2024 is starting to come in:
* GBTC outflow $22.4m, a record low outflow
* EZBC strong, with $7.9m inflow
Follow the action live here:https://t.co/4ISlrCgZdk pic.twitter.com/2lfSo6E5pz
— Farside Investors (@FarsideUK) February 26, 2024
Still, GBTC’s year-to-date outflow of $7.4 billion
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