Grayscalean American digital asset management company, has witnessed a staggering amount of outflows in its Spot Bitcoin ETF, Grayscale Bitcoin Trust (GBTC). Analysts speculate that the outflow may be related to several factors, including high trading costs and accounting irregularities.
Grayscale experiences massive outflows
After successful gaining approval for its Spot Bitcoin ETF Against the US Securities and Exchange Commission (SEC), Grayscale has seen steady inflows into its GBTC. However, recently reports suggesting that the company’s profits may have been premature GBTC in grayscale recently experienced significant outflows of approximately $594 million.
According to James Seyffart, a Bloomberg analyst X (formerly Twitter), Grayscale has experienced total net outflows of $1.173 billion for its Spot Bitcoin ETF.
Seyffart presented a screenshot of a spreadsheet detailing the cumulative inflows and trading volumes witnessed by several Spot btc ETF firms including BitwiseARK/21 shares, VanEck, and more. The analyst revealed that while many of these companies saw large inflows, profits were not enough to offset Grayscale’s substantial outflows of nearly $600 million.
Seyffart suggested that Grayscale’s lagging outflows may be due to T+1 accounting and settlement processes, causing previous days’ outflows to be reflected in recent data. On the other hand, a X user has published a scathing critique of Grayscale, stating that the crypto asset management company may continue to experience a massive shareholder exodus due to its exorbitant ETF fees.
Several investors may have turned to more affordable Spot Bitcoin ETFs, as GBTC’s ETF has a 1.5% expense ratio, making it the most expensive Spot Bitcoin ETF in the United States.
When asked by an declared:
“A lot of traders came in to play the discount close, so they left to take profits. There are also captive average investors who may have decided to stomach the tax burden to escape the 1.5% fee, I would expect more over time.”
BTC price at $42,600 | Source: BTUCSD on Tradingview.com
Spot Bitcoin ETF Records $10 Billion in Trading Volume
The crypto market’s recent reaction to increased trading activity in Spot Bitcoin ETFs has been remarkably positive.
Seyffart shared this in a message X that Spot Bitcoin ETFs have reached an impressive trading volume of almost $10 billion in just three days. This massive trading activity underlines the growing interest and positive shift in investor sentiment towards Discover BTC ETFs.
In a similar vein, Balchunas revealed that several recently launched Spot Bitcoin ETFs had seen significant inflows $1.4 billion. Leading the group is iShares Bitcoin Trust (IBIT), the Discover BlackRock’s Bitcoin ETF, has secured the top spot with half a billion inflows, followed by Fidelity in second place, ahead of other ETFs.
According to Balchunasall 500 ETFs launched in 2023 have amassed approximately $450 million in volume, indicating a promising uptrend for the Spot Bitcoin ETF market.
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