What Led to Grayscale’s Outflows
Several factors have contributed to Grayscale’s previous outflows since the launch of the 11 spot Bitcoin ETFs.
One prominent reason is GBTC’s comparatively high fees, standing at 1.5%, while other ETFs boast fees below 1%.
Currently, Franklin Templeton offers the lowest fee at 0.19%.
Additionally, the selling off of large amounts of GBTC shares by bankrupt crypto firms FTX and Genesis in an effort to repay creditors has been another key driver.
On April 6, Genesis liquidated approximately 36 million GBTC shares for $2.1 billion to acquire 32,041 Bitcoin.
Market observers have been speculating about when the “Bitcoin bleed” in GBTC might come to an end.
While GBTC outflows slowed down in late January and February, some analysts believed they could be nearing their conclusion.
However, in mid-February, bankruptcy courts permitted crypto lender Genesis to liquidate approximately $1.3 billion worth of GBTC shares as part of efforts to reimburse investors.
ETF analyst Eric Balchunas from Bloomberg previously suggested that the outflows would likely stop once GBTC experienced a 25% reduction in outstanding shares.
However, a poll on X indicated that most respondents expected the bleed to end in the range of 35-50%.
