Grayscale will lose $21 billion as spot bitcoin ETFs grow
Farside reports $21 billion in outflows from the Grayscale Bitcoin Trust (GBTC) since its January 11 inception. It is the first U.S. spot Bitcoin ETF with a negative net investment flow.
In less than a year, the spot Bitcoin ETF market has raised $35.5 billion despite GBTC's issues.
GBTC struggles to keep up with the increased demand for Bitcoin exposure via other authorized ETFs.
GBTC Outflows Outweigh ETF Inflows
Grayscale Bitcoin Trust has averaged $89.9 million in daily withdrawals for 11 months, according to Farside statistics. Since its January 2024 start, it has lost $21.045 billion.
Nine other U.S.-approved spot Bitcoin ETFs have received $20.737 billion in net investments.
Franklin, Valkyrie, VanEck, WisdomTree, and Grayscale's Bitcoin Mini Trust ETF have joined Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and Invesco Galaxy Bitcoin ETF in this expansion.
Despite these gains, these funds' combined inflows cannot overcome GBTC's enormous withdrawals.
GBTC outflows outweigh nine other Bitcoin ETFs.
The market is being reshaped by BlackRock's iShares Bitcoin Trust (IBIT). This fund dominates. Since debut, it has received $35.883 billion, averaging $153.3 million per day.
Within a year, BlackRock's spot Bitcoin ETF market surpassed $35.5 billion due to investor trust.
Grayscale's GBTC ETF difficulties are notable considering its pioneering position in Bitcoin ETFs
Challenges go beyond Bitcoin. Grayscale's Ethereum Trust ETF (ETHE) currently suffers like Bitcoin. Since July 2024, the ETHE fund has lost almost $3.5 billion, according to Farside statistics.
The market leader, BlackRock's iShares Ethereum Trust ETF (ETHA), and Fidelity Ethereum Fund (FETH), have had positive inflows of $3.2 billion and $1.4 billion, respectively.
Grayscale asked the NYSE to convert its Digital Large Cap Fund into an ETF on October 14. OTC trading fund has a broad portfolio. Bitcoin, Ethereum, Solana, Ripple, and Avalanche are included.
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