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

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

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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.

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