Grayscale Bitcoin Trust Faces Significant Outflows Amidst ETF Market Growth

According to Cointelegraph, the Grayscale Bitcoin Trust (GBTC) has experienced substantial outflows since its inception on January 11, 2024. The trust has seen over $21 billion withdrawn, marking it as the only spot Bitcoin exchange-traded fund (ETF) in the United States with a negative net investment flow. As of December 16, the total outflows from GBTC reached $21.045 billion, with the trust losing an average of approximately $89.9 million daily over the past 11 months, based on data from Farside Investors. While other spot Bitcoin ETFs in the US maintain positive balances, GBTC's outflows significantly surpass the investments of nine other funds. The nine ETFs, including the Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and ARK 21Shares Bitcoin ETF, have collectively attracted $20.737 billion. In contrast, BlackRock's iShares Bitcoin Trust (IBIT) has played a crucial role in maintaining a positive balance sheet, with total inflows of $35.883 billion and daily investments averaging $153.3 million since its launch. Despite the substantial outflows from Grayscale, the overall spot Bitcoin ETF market has grown, reaching over $35.5 billion in investments within less than a year. Grayscale's Ethereum Trust ETF (ETHE) is experiencing a similar trend to its Bitcoin counterpart, with losses exceeding $3.5 billion since its launch on July 23. Meanwhile, other funds in the spot ETH ETF ecosystem, such as BlackRock's iShares Ethereum Trust ETF and Fidelity Ethereum Fund, have reported positive inflows, with investments nearing $3.2 billion and $1.4 billion, respectively.