The Return of the King Coin On February 14, the market capitalization of bitcoin (BTC) once again reached $1 trillion. This dramatic increase in market capitalization is mainly due to significant inflows into U.S. spot bitcoin funds (ETFs).
Thomas Farrar, co-founder of #BTC tracking platform Apollo, noted the extraordinary influx of investment in X (formerly Twitter).
The inflows into BTC ETFs have completely accelerated.
In the last four days alone, ten #bitcoin ETFs have raised about $2.2 billion at current prices, more than in the first four weeks after launch.
This begs the question: how accurately do these ETFs track bitcoin? David Laval, global head of ETFs at Grayscale Investments, knows the answer: in an interview with CNBC, he explained.
"The tracking is really great. We've seen the Bitcoin #ETF fund perform very well. And we've seen that the liquidity profile is in line with our expectations.
Grayscale's Bitcoin Trust (GBTC) suffered significant outflows after the Spot Bitcoin Fund ETF was approved. Despite these problems, Grayscale maintains a leading position in the market.
At the time of publishing this article, GBTC held 461,983 BTC. In comparison, Apollo reported that BlackRock holds 105,280 BTC and #Fidelity holds 79,752 BTC. Notably, the latest data from CryptoQuant showed changes indicating a decrease in GBTC outflows and a positive price premium.
Mr. Laval expressed his satisfaction with the current state of GBTC. He commented.
"When you are the market leader, have the largest fund and represent a high-profile product with the greatest liquidity, investment opportunities and means of access, inflows and outflows will occur.
The executive also acknowledged that FTX will have to liquidate some of its GBTC holdings. However, he noted that the company will not be switching to other products.
Have high commissions led to investor outflows?
GBTC has been criticized for its relatively high commissions of 1.5%, which may have scared away investors. However, Mr.
Kamina is a content writer for AMBCrypto.
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