Nexo

Start Earning Up to 16% Interest Automatically

Learn More
Home » Bitcoin » Grayscale’s Bitcoin spot ETF sees outflows of over $2 billion in five trading days

Grayscale’s Bitcoin spot ETF sees outflows of over $2 billion in five trading days

by

The company has sent over $1 billion worth of Bitcoin to its Coinbase deposit address.

Grayscale’s Bitcoin spot ETF sees outflows of over $2 billion in five trading days

Share this article

The outflows of Grayscale’s spot Bitcoin exchange-traded fund (ETF), Grayscale Bitcoin Trust (GBTC), have exceeded $2 billion within five trading days, according to the latest data from Bloomberg ETF analyst Eric Balchunas.

Michael Sonnenshein, Chief Executive Officer at Grayscale Investments, said in an interview with Bloomberg that he was not surprised to see GBTC outflows, adding that the company cared more about trading volumes. When asked about the high management fee, Sonnenshein explained that GBTC’s 1.5% fee is fair, given the company’s “size, liquidity, and track record.”

Notably, GBTC’s increased outflows don’t necessarily mean decreased demand for spot ETFs. Other ETF providers have seen over $3 billion in inflows in the first five trading days, with BlackRock and Fidelity leading the pack. These two companies hold over $1 billion worth of BTC in their ETFs.

Bloomberg ETF analyst James Seyffart suggested that investors sell GBTC to buy other spot Bitcoin ETFs.

Amid continuous outflows, concerns over the selling pressure on Bitcoin following Grayscale’s Bitcoin deposits to Coinbase Prime have increased. According to data from Arkham Intelligence, over $1 billion has been sent from Grayscale’s ETF fund to Coinbase since January 11.

The price of Bitcoin was down over 6% over the past week, according to data from CoinGecko.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.