Bitcoin
Grayscale Bitcoin ETF sees $121 million outflows amid falling asset prices
The Grayscale Bitcoin ETF (GBTC) saw $121 million in outflows after selling 1,800 BTC. This brings the total number of assets sold since the approval of Bitcoin ETFs to 335,000 BTC as other issuers record inflows. The Grayscale ETF has faced hurdles due to several factors that have led to huge market outflows. Bitcoin ETFs have rallied cryptocurrency markets, and amid declining asset prices, some analysts say a surge will usher in the next rally.
Grayscale sees output streams
Grayscale has once again marked a significant exit from its holdings following previous figures. Network data shows that 1,800 BTC left the fund today, bringing the total number since January 11 to 335,000. To put this into perspective, more than $121 million in outflows have been recorded, approximately $17.8 billion, since the approval of spot Bitcoin ETFs in the United States.
To date, Grayscale’s assets under management (AUM) remain at the top, with assets worth US$31.8 billion. While the Bitcoin ETF recorded massive outflows, others recorded inflows of more than 17 billion dollars. Grayscale is a major player in Bitcoin investment products and was instrumental in approving spot ETFs in the United States following a lawsuit.
However, its price and the recent crypto market decline continue to encourage outflows from the fund. Grayscale’s management fee is 1.5%, while competitors have reduced fees to an average of 0.30%. This led to entries into new Bitcoin investment products following the approval of ETFs. Crypto enthusiasts have been pushing for a reduction in fees to compete with other issuers.
Bitcoin ETFs for market recovery
To date, the crypto market has recorded huge losses over the last 48 hours, with major altcoins recording double-digit losses. Bitcoin and Ethereum saw outflows of 3.3% and 4% respectively, while Solana saw larger outflows of 6.7%. According to Santiment, Bitcoin ETF volumes are at their highest point since May 15th in terms of volume. Previous data shows that when volumes increase, the asset is primed to reach price highs, erasing previous losses.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and keeps an eye on the latest news. Staying up to date with trends, David has reported on various niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from financial markets, David rides his bike and horses.