Grayscale Bitcoin ETF (GBTC) experienced a substantial outflow of $121 million following the sale of 1800 BTC, adding to the total assets sold since the approval of Bitcoin ETFs, which now stands at 335,000 BTC. While other issuers have recorded inflows, Grayscale ETF encountered challenges leading to significant market outflows.
Despite the declining asset prices, some analysts anticipate an uptick that could signal the next market rebound. This latest exit from Grayscale holdings follows previous notable outflows.
On-chain data indicates that 1,800 BTC exited the fund recently, contributing to the total outflow since January 11, reaching 335,000 BTC. This translates to approximately $121 million in outflows, adding to the total outflows of about $17.8 billion since the approval of spot Bitcoin ETFs in the United States. Grayscale's assets under management (AUM) remain substantial, standing at $31.8 billion, despite the significant outflows.
Source: CoinShares
While Grayscale's Bitcoin ETF has experienced notable outflows, other ETFs have seen inflows totaling over $17 billion. Grayscale, a major player in Bitcoin investment products, played a significant role in the approval of spot ETFs in the United States following a lawsuit.
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Grayscale Faces Pressure to Cut Fees Amid Crypto Market Slump
The ongoing decline in its price, coupled with the recent downturn in the crypto market, has continued to trigger outflows from the fund. Grayscale's management fee stands at 1.5%, notably higher than competitors who have slashed fees to an average of 0.30%.
This discrepancy has prompted investors to move towards new Bitcoin investment products post-approval of ETFs, resulting in inflows for these alternatives. Consequently, there has been a growing push from crypto enthusiasts for Grayscale to reduce its fees to remain competitive with other issuers.
Source: Santiment
As of now, the crypto market has seen significant losses over the last 48 hours, with top altcoins experiencing double-digit declines. Bitcoin and Ethereum witnessed outflows of 3.3% and 4%, respectively, while Solana recorded a larger outflow of 6.7%.
According to Santiment, Bitcoin ETF volumes have reached their highest point since May 15 in terms of volume. Historical data suggests that when volumes surge, the asset tends to reach price highs, potentially offsetting previous losses.
Read more:
Crypto Market in Flux: Bloodbath or Buying Opportunity?
Bitcoin Dips Amid Inflation Concerns and ETF Outflows
SEC Confirms ProShares Ethereum ETF, But Launch Could Be Delayed
See more: Cryptocurrency Prices and Market Cap
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