Bitcoin

Grayscale GBTC Sold Over 150,000 BTC Since Spot Bitcoin ETF Launch

Key Points:

Spot Bitcoin ETFs surge, eclipsing miner production tenfold, showcasing strong investor demand.
BlackRock’s iShares Bitcoin Trust leads with a $374.7 million inflow, while Grayscale GBTC faces outflows due to high fees.

In recent trading sessions, spot Bitcoin ETFs have seen a remarkable surge, outpacing new Bitcoin creation by miners by over tenfold.

Inflows Dominated by BlackRock’s iShares Bitcoin Trust, Outflows Challenge Grayscale GBTC

According to data from HODL15Capital, the launch of the spot Bitcoin ETF has led to significant activity. Grayscale GBTC sold 155,745 BTC, while the new ETF acquired 228,074 BTC, resulting in a net purchase of 72,329 BTC, equivalent to approximately $3.58 billion.

BlackRock’s iShares Bitcoin Trust attracted substantial funds, receiving $374.7 million, followed by Fidelity’s Wise Origin Bitcoin Fund with $151.9 million and the Ark 21Shares Bitcoin ETF with $40 million. However, Grayscale and the Invesco Galaxy ETF experienced outflows of $95 million and $20.8 million, respectively, although net inflows still approached nearly half a billion dollars.

Digital Currency Group Reports Revenue Growth Amidst Bitcoin’s Recovery

The approval of spot Bitcoin ETFs by the US SEC saw Grayscale GBTC witness significant outflows due to its relatively high fees of 1.5%. Grayscale, a major player in Web3, and its parent company, Digital Currency Group (DCG), have faced challenges.

Despite this, Grayscale’s Q4 2023 revenue exceeded expectations, climbing from $132 million in 2022 to $210 million in 2023, largely attributed to Bitcoin’s price recovery.

Grayscale GBTC, now holding about $23 billion in assets, five times the size of BlackRock’s iShares Bitcoin Trust, stands to benefit from Bitcoin’s resurgence above the $50,000 mark. Despite operational hurdles, optimism surrounds GBTC and DCG, hinting at potential upside ahead.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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.