The market share of Greyscale Bitcoin ETF has dropped to 50%

Crypto asset manager Grayscale's spot Bitcoin (BTC) exchange-traded fund (ETF) fell below 50% market share for the first time since Bitcoin ETFs began trading in the United States on January 11.

In the year As of March 12, the total assets under management (AUM) in Greyscale Bitcoin Trust (GBTC) fell to $28.5 billion – according to Dune Analytics data, Grayscale now accounts for 48.9% of the total $56.7 billion held among ten US Bitcoin ETFs. .

On the first trading day of the ten US positions Bitcoin ETF, the grayscale fund accounted for around 99.5% of the total AUM.

Over time, consistent daily outflows from GBTC — which averaged $329 million per day last week — have eaten away at the ETF's market share.

GBTC exits were huge in the first month they went live – $7 billion left the fund in just over a month – but began to slow down in late January, leading some analysts to suggest that it might be coming to an end.

However, in mid-February, bankruptcy courts allowed crypto lender Genesis to liquidate roughly $1.3 billion worth of GBTC shares as part of an effort to repay investors, as outflows are picking up again.

In total to date, GBTC outflows have reached just over $11 billion, according to Farside Bitcoin ETF flow data.

Greyscale's ETF was initially a trust that allowed institutional investors to gain exposure to Bitcoin by locking in funds for at least six months.

However, the trust switched to an ETF in August after a court win against the Securities and Exchange Commission and the regulator's approval of other spot Bitcoin ETF applications.

This allowed institutional investors – who benefited from GBTC's arbitrage – to withdraw their capital from the fund for good, or simply switch their assets to low-fee Bitcoin ETFs.

Related: SEC radio silence on Ethereum ETF ‘not a good sign' – Bloomberg analyst

While the market was initially bullish on increasing outflows from GBTC, increasing net inflows into BlackRock's iShares Bitcoin ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) funds, both of which now have a total of $16.9 billion in inflows since inception, have given cause for optimism. .

Many market analysts have attributed the rapid appreciation of Bitcoin's price to a high of $72,900 on March 11th to the increasing inflows into the nine newly launched ETFs as the main factors.

BlackRock's fund now holds slightly more than 200,000 BTC—worth roughly $14.3 billion at current prices, according to K33 Research.

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