TL;DR
- Grayscale’s GBTC Sees Record Low Outflow: After two months of substantial losses, the Grayscale Bitcoin Trust ETF (GBTC) registered its smallest cash withdrawal of approximately $18 million on Thursday. This comes after a cumulative outflow of roughly 300,700 Bitcoins.
- Shift in Market Trends: Despite the outflows, other Bitcoin ETFs reported net inflows. Fidelity’s spot Bitcoin ETF reported net inflows of $76.3 million, BlackRock’s IBIT drew in $33.3 million, and Bitwise’s Bitcoin ETF registered inflows of $24.3 million.
- Grayscale’s Future Plans: Grayscale is actively lobbying the U.S. SEC for approval of its Grayscale Bitcoin Mini Trust, which offers a reduced sponsor fee. Grayscale’s CEO, Michael Sonnenshein, anticipates a substantial decrease in the GBTC cash outflow in the short term as the overall outflow approaches a balance.
Following a period of over two months marked by substantial losses, the Grayscale Bitcoin Trust ETF (GBTC) registered its smallest cash withdrawal on Thursday. Spot ETF market data reveals that Grayscale Investments’ GBTC experienced a total cash outflow of approximately $18 million.
Consequently, since the US SEC approved spot BTC ETFs earlier this year, Grayscale’s GBTC has witnessed a cumulative outflow of roughly 300,700 Bitcoins, valued at approximately $15.96 billion. According to data from SoSoValue, the net inflow of Bitcoin spot ETF reached a significant milestone of $123 million yesterday.
On Thursday, Grayscale’s GBTC owned approximately 312,878 Bitcoins, which had a total value of around $21.8 billion. As of Wednesday, with 354,890,100 shares in circulation, the trading price for Grayscale’s GBTC was about $62.39.
According to data from Farside, GBTC saw a combined net outflow surpassing $450 million on both Monday and Tuesday, leading to a total of over $16 billion in outflows over the previous three months. However, these outflows decelerated to $17.5 million on Wednesday, a significant drop from Tuesday’s $154.9 million.
Grayscale’s Lobbying Efforts: The Push for Bitcoin Mini Trust
On the same Wednesday, Fidelity’s spot Bitcoin ETF reported net inflows of $76.3 million, BlackRock’s IBIT drew in $33.3 million, and Bitwise’s Bitcoin ETF registered inflows of $24.3 million. In addition, Ark Invest’s ARKB experienced net inflows of $7.3 million.
Grayscale and its team are striving to mitigate further losses in the face of Bitcoin and digital assets becoming increasingly popular among institutional investors. Grayscale is actively lobbying the U.S. SEC for approval of its Grayscale Bitcoin Mini Trust, which offers a reduced sponsor fee.
Alongside the liquidation of GBTC by firms that have gone bankrupt in the crypto sector, investors are shifting towards alternative spot BTC ETF issuers that offer lower sponsor fees. At present, the GBTC’s sponsor fee stands at approximately 1.5 percent, which is significantly higher than the average fee of about 0.25 percent.
Grayscale’s CEO, Michael Sonnenshein, anticipates a substantial decrease in the GBTC cash outflow in the short term as the overall outflow approaches an equilibrium. Sonnenshein is optimistic that, with time, Grayscale will draw a larger number of investors toward its spot Bitcoin ETF offerings and other products.
