Grayscale’s Bitcoin ETF posts largest daily outflow as Bitcoin’s price wobbles near $63,000

Grayscale’s Bitcoin ETF posts largest daily outflow as Bitcoin’s price wobbles near $63,000
Grayscale’s Bitcoin Trust recorded its highest daily outflow since it first began to trade as a spot ETF in January. Credit: Jakub Porzycki/NurPhoto/Shutterstock
  • Grayscale’s GBTC is yet to post a single day of inflows.
  • The asset manager’s fund has recorded the single largest day of money flowing out.

On Monday, Grayscale’s Bitcoin Trust recorded its highest daily outflow since it first began to trade as a spot exchange-traded fund in January.

The latest outflows come as Bitcoin fell over $10,000 from its fresh all-time high, set last week.

Mass exodus

GBTC witnessed $643 million worth of Bitcoin exit the ETF, $3 million more than its second-largest outflow recorded on January 22, BitMex Research data shows.

The digital asset manager’s flagship product, the Grayscale Bitcoin Trust, has witnessed a $3.1 billion exodus in the last two weeks.

The massive outflows from Grayscale’s fund have been attributed, in part, to its high fee structure.

Investors in Grayscale’s flagship product pay a 1.5% management fee, which is far higher than any of its revival issuers.

Other issuers, such as WisdomTree, have waived fees for the first six months or up to $1 billion in assets under management.

JPMorgan warned outflows were putting pressure on Grayscale to lower its fees in January, but the issuer has shown no intention of doing so.

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Last week Grayscale filed for a new spot Bitcoin ETF which would have a lower fee.

Grayscale’s decision to launch the second ETF is likely in response to the “exodus,” Eric Balchunas, an ETF analyst at Bloomberg Intelligence, said last week.

Bitcoin fell 7% in the past 24 hours, and roughly 12.5% over the last seven days to around $63,200.

Even with Grayscale facing difficulties, the recent surge in Bitcoin’s price has helped maintain GBTC’s asset value at a relatively stable level, DL News previously reported.

As the price of Bitcoin begins to fall, issuers may continue to see a further decrease in total assets under management.

Grayscale did not immediately return a request for comment.

Crypto market movers

  • Bitcoin dropped 7.3% overnight and now trades at $63,200.
  • Ethereum plunged 9% over the past 24 hours to trade at $3,263.
  • Solana fell 13% to $180.

What we’re reading

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.