🚨 Grayscale Bitcoin Trust Sees $21 Billion in Outflows Amid ETF Competition 🚨$BTC

In a dramatic shift, the Grayscale Bitcoin Trust (GBTC) has experienced $21 billion in outflows in under 12 months, marking a significant challenge as new competitors flood the U.S. spot Bitcoin ETF market.

Key Highlights

1️⃣ Massive Outflows from GBTC

Since its launch in January 2024, GBTC has been shedding $89.9 million daily, amounting to a total outflow of $21.045 billion as of December 16.GBTC remains the only U.S.-based spot Bitcoin ETF with a negative net investment flow, even as its competitors maintain positive inflows.

2️⃣ Spot Bitcoin ETF Surge

Despite GBTC’s decline, the broader spot Bitcoin ETF market has surged, reaching a $35.5 billion market cap within a year.Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has attracted a staggering $35.883 billion in inflows, averaging $153.3 million daily since its inception.

3️⃣ Competition Heats Up

Nine other Bitcoin ETFs, including Fidelity, ARK 21Shares, and Invesco Galaxy, collectively brought in $20.737 billion, nearly matching GBTC’s outflows.

Ethereum Trusts Following Suit

Grayscale’s Ethereum Trust ETF (ETHE) is also struggling:

Since its launch in July 2024, ETHE has lost $3.5 billion in under six months.Meanwhile, competing funds like BlackRock’s iShares Ethereum Trust ETF and Fidelity Ethereum Fund are seeing positive inflows of $3.2 billion and $1.4 billion, respectively.

What’s Driving the Shift?

1️⃣ Enhanced Competition

The approval of multiple spot Bitcoin and Ethereum ETFs has created a more diverse and competitive market, drawing investments away from GBTC.

2️⃣ Investor Preferences

Investors are gravitating toward better-managed and cost-effective ETFs like BlackRock and Fidelity, which are offering consistent inflows.

3️⃣ Market Dynamics

GBTC’s negative flow trends suggest a shift in investor sentiment, with competitors capitalizing on new inflows and market optimism.

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