Bloomberg: Grayscale Bitcoin ETF funds have been outflowing for 31 consecutive trading days

Author: Katie Greifeld, Bloomberg; Compiler: Deng Tong, Golden Finance

The world’s largest Bitcoin ETF has reached a bad milestone: a full month of continuous fund outflows.

As of Monday, the $24.2 billion Grayscale Bitcoin Trust (ticker GBTC) had seen outflows of $7.4 billion in 31 trading days, according to Bloomberg data. GBTC has not seen a single inflow since converting to an ETF in mid-January.

This stands in stark contrast to nine other newly launched spot Bitcoin ETFs In contrast, all of these ETFs have seen net inflows since trading began. Several different factors explain this difference: While GBTC is by far the largest and most traded Active peers, but its 1.5% management fee means it's also the most expensive product, with most peers charging less than 0.3%. In addition, bankrupt estates such as Genesis Global Holdco LLC have been seeking to sell their holdings.

But even with these caveats — including not allowing GBTC redemptions in the previous structure — the persistence of outflows remains surprising, according to Vident Asset Management.

Amrita Nandakumar, president of Vident Asset Management, said: “Most in the industry were expecting outflows, we all knew it was coming – these long-term holdings Some are waiting for the fund to finally exit." "60 days? I don't think so, but then again, I was surprised to see it's already 30 days."

To be sure, capital outflows have slowed down in recent days. Just $22 million left the fund on Monday, compared with $640 million in January. But even so, GBTC's $7.4 billion in outflows so far this year are the second-largest among more than 3,400 U.S.-listed ETFs.

A Grayscale spokesperson said: “The Grayscale team expects GBTC’s diverse shareholder base to participate in profit-taking and deployment Investment strategies impacting trust fund flows, we are pleased to see continued steady outflows, particularly in the context of forced sales resulting from real estate bankruptcies.” to email. “With market-leading liquidity, strong trading volumes and an unparalleled track record, we expect GBTC to continue to be a major capital for Bitcoin Market risk transfer tools.”

While GBTC continues to sell off the asset, nine other spot Bitcoin ETFs launched in January have absorbed dozens amid the cryptocurrency’s rally billion in funding. BlackRock and Fidelity lead the way, attracting about $6 billion and $4 billion respectively, followed by the likes of Ark Invest and Bitwise.

Nonetheless, GBTC still has a loyal following among cryptocurrency advocates who have outmaneuvered the SEC. The judge ruled in August that the agency was "erratic" in banning Grayscale from converting to an ETF, a key step that led to last month's launch of the ETF. Nandakumar said such investors may overlook GBTC’s relatively high fees.

"Non-traditional ETF investors who have strong brand loyalty to Grayscale and appreciate what they 'stand for' - standing up to the SEC and 'getting things done' may be inclined to invest because they There is brand affinity to Grayscale,” said Nandakumar.

GBTC shares are up 40% so far this year, while Bitcoin is up about 34%. On Tuesday, the largest digital currency topped $57,500 for the first time since late 2021.