Grayscale Bitcoin Trust ETF outflows exceed $21B in under 12 months

As an analyst with over two decades of experience in the financial industry, I’ve seen my fair share of market ebbs and flows. The ongoing saga of the Grayscale Bitcoin Trust (GBTC) is undeniably one for the books. With over $21 billion in outflows since its launch, it’s safe to say that GBTC is experiencing a significant investor exodus.

Since its debut on January 11, 2024, over $21 billion has been taken out of the Grayscale Bitcoin Trust (GBTC), marking it as the sole U.S.-based spot Bitcoin exchange-traded fund (ETF) experiencing a consistent outflow rather than an inflow of investments.

Since December 16th, GBTC has experienced a total withdrawal of around $21.045 billion, with the trust losing roughly $89.9 million per day on average for more than 11 months, as reported by Farside Investors.

Despite the other 10 approved Bitcoin ETFs in the U.S. keeping a healthy financial status, Grayscale Bitcoin Trust (GBTC) experiences significantly more withdrawals than the combined inflows of nine of these funds, according to the chart provided.

Grayscale’s $21 billion outflows shadow other spot Bitcoin ETFs

Recently, a total of nine Bitcoin-focused funds – Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), ARK 21Shares Bitcoin ETF (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), Franklin Bitcoin ETF (EZBC), Valkyrie Bitcoin Fund (BRRR), VanEck Bitcoin ETF (HODL), WisdomTree Bitcoin Fund (BTCW) and Grayscale Bitcoin Mini Trust ETF (BTC) – have collectively amassed an impressive $20.737 billion in investments.

Instead of it, the iShares Bitcoin Trust (IBIT), offered by BlackRock, significantly contributes to a strong financial position. The trust has accumulated total inflows worth $35.883 billion since its launch, with an average daily inflow of around $153.3 million.

Spot Bitcoin ETFs Surge to $35.5 billion despite Grayscale’s investment exodus

As an analyst, I’ve observed an impressive growth in the Bitcoin Spot ETF market, despite substantial outflows of funds. In less than a year, this market has amassed more than $35.5 billion in investments.

As an analyst, I’ve observed that the investment path of Grayscale’s Ethereum Trust ETF (ETHE), introduced alongside eight other Ethereum-focused ETFs in the U.S., mirrors the trajectory of its Bitcoin counterpart. This suggests a consistent trend between these two significant cryptocurrencies within the broader context of their respective exchange-traded funds.

Since its launch on July 23, the cryptocurrency ETHE has seen a total loss of more than $3.5 billion within just under six months as of December 13.

In the Ethereum ETF market at present, most funds are receiving more money, with BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity Ethereum Fund (FETH) being the main contributors. They have attracted investments totalling roughly $3.2 billion for ETHA and $1.4 billion for FETH so far.

Read More

2024-12-16 12:02