Bitcoin

GBTC Outflows Reached Nearly $6 Billion In 16 Trading Days

Key Points:

  • GBTC outflows saw $5.6 billion in the last 16 days, losing its dominance in the Bitcoin ETF market to BlackRock’s IBIT and ProShares’ BITO.
  • In response to new rivals like IBIT and FBTC, Invesco and Galaxy Asset Management cut fees to 0.25%.
In a notable development in the cryptocurrency market, Grayscale’s Bitcoin Trust (GBTC) has seen significant outflows, totaling $5,968 million over the last 16 trading days, according to data from BitMEX Research.
GBTC Outflows Reached Nearly $6 Billion In 16 Trading Days 2

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

GBTC Outflow Surge: $5.6 Billion in 16 Days

Since the launch of spot Bitcoin ETFs on January 11, Grayscale’s converted GBTC ETF has been dominating daily trading volumes until February 1.

On that day, BlackRock’s iShares Bitcoin Trust (IBIT) and ProShares’ Bitcoin Strategy ETF (BITO) outpaced GBTC, with IBIT leading at $301 million in volume and BITO closely following at $298 million. GBTC secured the third spot with $292 million in trades.

This shift marked the end of GBTC’s supremacy, raising concerns over GBTC outflows of $5.6 billion since the ETF conversion, likely influenced by locked-in investors and higher expense ratios compared to competitors.

Emerging Trends of Stability Post-ETF Launch

Despite the significant GBTC outflows, balance data indicates a more balanced trend in the second half of the month, hinting at a potential cooling of the volatility witnessed post-ETF launch. GBTC’s dominance was initially fueled by heavy outflows from the trust, attributed to investors’ newfound ability to redeem their investment after the product’s conversion to a spot ETF.

Grayscale’s high fees have played a crucial role in shedding over $5.8 billion worth of assets since January 11, as reported by BitMEX Research. The competition in the market is intensifying, with Invesco and Galaxy Asset Management reducing their fees to match the industry standard of 0.25%. These newcomers offer lower costs, potentially attracting more investors and reshaping the landscape of the Bitcoin ETF market.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Crypto Advisory Council Now A White House Position Attracting Leaders

Major crypto firms, including Ripple, Kraken, and Circle, are competing for spots on President-elect Donald…

27 minutes ago

Analyst Sounds Major Breakout Alert Amid Shiba Inu, WallitIQ, And Dogecoin Price Recoveries

Analysts highlight a breakout alert as Shiba Inu (SHIB), and Dogecoin show signs of recovery…

58 minutes ago

SEC Chair Gary Gensler Will Lose Power From January 20

SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with President-elect Donald…

60 minutes ago

MicroStrategy Convertible Notes Now Out of Stock With $3B Raised

The MicroStrategy convertible notes offering, initially set at $1.75 billion, was increased to $2.6 billion…

1 hour ago

Qubetics, Cosmos, and Chainlink: Why These Cryptos Are Your Best Bet for November 2024

Discover why Qubetics, Cosmos, and Chainlink are the best cryptos to buy in November 2024.…

5 hours ago

Best Cryptos to Buy in December 2024: Qubetics Presale Goes Ballistic as Ethereum and Quant Look to Build Momentum

Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…

8 hours ago

This website uses cookies.