Asset management company Grayscale has been recording a steady outflow in its spot Bitcoin exchange-traded fund (ETF) business. Yesterday alone, the firm saw over $515 million exit its platform.
Massive Exodus from GBTC
For about a week, Grayscale’s Bitcoin Trust ETF (GBTC) has been seeing continuous outflows. Unlike other financial institutions that decreased their fees to attract more investors, Grayscale offered the highest fee of 1.5%.
Immediately after the spot Bitcoin ETFs were approved, Grayscale took the largest market share, raking in funds from most investors. For example, the asset management firm accounted for over $2.3 billion on the first trading day. However, the bullish trend has currently seized.
A few days ago, the FTX bankruptcy estate sold off most of its GBTC holdings, worth $1 billion. This turn of events triggered a massive sell-off in the spot Bitcoin ETF market. With more than half a billion dollars exiting Grayscale’s Bitcoin ETF within 24 hours, the firm now records a $3.96 billion outflow since the U.S. Securities and Exchange Commission (SEC) approved the product.
On the other hand, Bitcoin ETF issuers like BlackRock and Fidelity are seeing substantial increases. Yesterday alone, BlackRock’s iBTC and Fidelity’s FBTC saw over $160 million and $157 million inflows, respectively. Other issuers of the financial product are also seeing mild increases.
The increase in other spot Bitcoin ETFs likely indicates that investors are fleeing to Bitcoin-backed products with lower fees.
BTC Slumps to $39k
At the time of the spot Bitcoin ETF anticipation, BTC’s value soared to as high as $47,000. However, the ongoing sell-off has affected Bitcoin’s price negatively. The asset has now dropped below its $40,000 price range, signifying the lowest price since this year’s start.
At the time of writing, the leading cryptocurrency trades at $39,700, representing a 6.1% decrease over the past week and a 7.4% decrease in a month-to-date (MTD) timeframe.
Source: CoinStats
