Despite the ‘balanced’ opinion of the CEO, GBTC will see a cost of 166 million dollars
Greyscale's Bitcoin Exchange Traded Fund (ETF), GBTC, continued to withdraw more than $166 million and more than 2,500 Bitcoins (BTC) from the fund's holdings on Friday, April 12.
According to data from Farside Investors, outflows from GBTC since the Bitcoin ETF launched in January have now exceeded $16.2 billion. Since April, daily outflows from Grayscale Bitcoin Trust (GBTC) have fluctuated between $75 million and $300 million.
On the other hand, inflows into Bitcoin ETFs are minimal, indicating that investor participation is declining. GBTC saw a record inflow of $767 million this week, contributing to the negative inflows of Bitcoin ETFs in general.
BlackRock provided strong support, narrowing the gap with grayscale bitcoin stocks as assets under management of the IBIT Bitcoin ETF exceed $15 billion. A significant amount of GBTC flows must have flowed into Blackrock.
Greyscale CEO Michael Sonnenschein hinted earlier this week that outflows from the Greyscale Bitcoin Trust may be stable, reflecting optimism among traders and investors. However, the current situation may not be consistent with this optimism.
One of the main reasons behind the massive flow of GBTC is the fund's high management fee. However, Sonnenschein was reluctant to cut fees even if he lost the flow to his competitors. GBTC has the highest management fees of all US Bitcoin ETFs – 1.5% per year compared to an average of 0.30% for its competitors.
RELATED: Bitcoin Price Hits $69K As Gold Rush Rocks Markets
Sonnenschein said markets often show high excitement when products like the Grayscale Bitcoin Trust or thematic exposure products first come out. However, these products mature over time, leading to market consolidation as investors focus on a few offerings.
According to Farside data, GBTC saw an outflow of $17.5 million on April 10, which is a significant decrease compared to the outflow of $154.9 million recorded on April 9. The previous low was on February 26, when GBTC topped $22.4 million. The daily cost of GBTC averaged $257.8 million over four months.
GBTC in 2010 Launched in 2015 and converted into an ETF in January, Grayscale — along with the launch of nine Bitcoin ETFs — forced it to review its rejected GBTC conversion bid after winning a lawsuit at the Securities and Exchange Commission.
Bankrupt crypto-lending firm Genesis unloaded nearly 36 million GBTC shares to acquire 32,041 bitcoins.
Magazine: Bitcoin ETFs Make Coinbase a ‘Honeypot' for Hackers and Governments – Treasure CEO
