Bitcoin exchange-traded funds, on the other hand, have seen almost no investment activity, suggesting that investors are losing interest.
On Friday, April 12, the Grayscale Bitcoin exchange-traded funds (ETF), GBTC, had a withdrawal of approximately $166 million and over 2,500 bitcoins, continuing their pattern of substantial withdrawals.
Since the Bitcoin ETF launched in January, outflows from GBTC have surpassed $16.2 billion, according to statistics from Farside Investors. There has been a daily range of $75 million to $300 million for Grayscale Bitcoin Trust (GBTC) outflows since April.
Bitcoin exchange-traded funds, on the other hand, have seen almost no investment activity, suggesting that investors are losing interest. GBTC had a substantial outflow of $767 million this week, which added to the general trend of negative flows into Bitcoin ETFs.
IBIT Bitcoin ETF assets under management have surpassed $15 billion, bringing BlackRock’s backing for the fund closer to that of Grayscale’s Bitcoin reserves. Most of the money that left GBTC has probably gone into BlackRock.
Traders and investors may be feeling optimistic after Grayscale CEO Michael Sonnenshein dropped a hint earlier this week that Grayscale Bitcoin Trust outflows could be stabilising. But the numbers as they stand suggest things may not work out this way.
Massive GBTC outflows have occurred in part because of the fund’s exorbitant management costs. Despite losing the flows to rivals, Sonnenshein has been reluctant to decrease the fees. When compared to other Bitcoin exchange-traded funds (ETFs) in the US, GBTC’s 1.5% annual management charge is much higher than the market average of 0.30%.
When new commodities or theme exposure products, such as Grayscale Bitcoin Trust, appear on the market, Sonnenshein said, investors tend to become quite excited. Market concentration occurs when investors zero in on a small number of items, but, since these products develop over time.
In contrast to the $154.9 million withdrawals reported on April 9, GBTC had outflows of $17.5 million on April 10, according to Farside statistics. When GBTC outflowed $22.4 million on February 26, it was the previous low. On average, $257.8 million leaves the GBTC network every day throughout the course of the four months.
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