Amid recent declines in the price of Bitcoin (BTC), Grayscale’s ETF recorded $121 million in outflows after selling 1,800 BTC. With this, GBTC reached 335,000 BTC sold since its conversion to ETF on January 10th.
By way of comparison, most other ETF issuers record inflows, especially BlackRock and Fidelity. In fact, with the huge losses of Grayscale’s GBTC, BlackRock’s ETF (IBIT) now holds the position of the largest Bitcoin ETF on the market.
GBTC has faced obstacles due to several factors that have led to huge market outflows, including higher rates. Furthermore, the recent drop in the price of BTC has increased the fund’s outflow.
Record Outflows in GBTC Bitcoin ETF
According to blockchain data, 1,800 BTC left GBTC on Tuesday (11), bringing the total number of outflows to 335,000 BTC since January 11. To put this into perspective, this number corresponds to more than $22.4 billion in withdrawals.
Even with these outflows, GBTC is still the second largest Bitcoin ETF on the market, behind only BlackRock’s IBIT. But before its transformation into an ETF, the fund had more than 630,000 BTC under custody. There was, therefore, a drop of almost 50% in the amount of assets under management.
The management fee that Grayscale charges on GBTC is 1.5%, while competitors have reduced fees to an average of 0.30%. These much higher costs have caused investors to flock to other ETFs in search of maximizing their gains.
Bitcoin ETFs for market recovery
To date, the cryptocurrency market has recorded huge losses in the last 48 hours, with major altcoins recording double-digit drops. In contrast, BTC and Ethereum (ETH) saw modest increases of 1.2% and 0.3%, respectively.
According to Santiment, Bitcoin ETF volumes are at their highest point since May 15. Past data shows that when volumes increase, BTC is poised to hit price highs, erasing previous losses.
Source: https://www.criptofacil.com/queda-do-bitcoin-faz-etf-da-grayscale-ter-recorde-de-saques/
