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Over $166 Million Withdrawn from GBTC in a Single Day

Key Takeaways

  • Grayscale Bitcoin Trust (GBTC) experienced an outflow of $166.2 million in one day despite the CEO suggesting potential stabilization;
  • GBTC's higher management fees of 1.5%, compared to the 0.30% average of competitors, may be pushing investors towards more affordable options;
  • Since converting to a spot Bitcoin ETF in January, GBTC has seen over $16.2 billion in outflows.
Over $166 Million Withdrawn from GBTC in a Single Day

Despite recent comments from Grayscale CEO Michael Sonnenshein suggesting a potential stabilization, the Grayscale Bitcoin Trust (GBTC) witnessed an outflow of $166.2 million on Friday, April 12.

The high management fees charged by GBTC possibly contribute to these large outflows. At 1.5%, these fees are considerably above the 0.30% average of its competitors, which could be steering investors towards more cost-effective options.

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Data from Farside Investors highlights that since January, when it transitioned to a spot Bitcoin exchange-traded fund (ETF), GBTC has seen over $16.2 billion in outflows. The daily average has hovered around $254.3 million.

Last week, $767 million exited the fund amid a broader slowdown in market inflows for spot Bitcoin ETFs.

 

Since its inception in 2015 and subsequent conversion to an ETF in January — following the US Securities and Exchange Commission's approval — GBTC has been at the forefront of offering Bitcoin exposure to investors. This transformation came alongside the introduction of nine other spot Bitcoin ETFs.

BlackRock's iShares Bitcoin Trust ETF is also among the leaders, amassing assets under management (AUM) worth over $15 billion and closely competing with GBTC's market share.

As the crypto market matures and investors become more discerning, GBTC's future may hinge on its ability to adapt to lower cost structures and maintain investor confidence amidst growing competition.

In the meantime, Hong Kong is also about to launch its first spot Bitcoin ETFs.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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