Since the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF, the price of Bitcoin has dropped significantly, from as high as $48,969 on the 11th to currently fluctuating around $41,500. The market believes that this is related to the transformation of Grayscale GBTC into Bitcoin. After the currency spot ETF was launched, investors continued to sell large amounts to take profits as the negative premium approached zero.
According to data from BitMEX Research, after GBTC was transformed into a Bitcoin spot ETF, in the first six trading days as of last Friday, the total outflow of GBTC was as high as 2.8 billion U.S. dollars, with an outflow of 95.1 million U.S. dollars on the first day and an outflow of 484.1 million U.S. dollars on the second day. For US dollars, there was an outflow of US$594.4 million on the 3rd day, an outflow of US$460.6 million on the 4th day, an outflow of US$582.3 million on the 5th day, and an outflow of US$590.4 million on the 6th day.
Although some people in the market believe that one of the reasons for the sell-off of GBTC may also be related to its high management fee of 1.5%. The funds selling GBTC are likely to flow into other ETFs with lower management fees, but Bloomberg analyst Eric Balchunas said, He believes that only 10% of GBTC funds may flow out and eventually flow into the other nine ETFs, which is much less than people think.
Given that GBTC is currently the largest Bitcoin ETF in the world, holding more than $25 billion worth of Bitcoin, Ran Neuner, co-founder and CEO of Onchain Capital, previously warned that Bitcoin may face a period of selling pressure of $25 billion. It's a pretty big position, and even if only 20% is redeemed, that means there will be $5 billion of selling pressure in the market.
Therefore, Chris J Terry, chief architect of BTCdata, tweeted on the 21st that before the liquidation of GBTC is completed, the price of Bitcoin will continue to be flat or fall. In the next few weeks, there will be a sell-off of up to 25 billion US dollars. Grayscale will reduce the ETF management fee The decision to keep the rate at 1.5% will become the biggest strategic mistake in the history of cryptocurrency.
