For the first time since becoming a regular Bitcoin exchange-traded fund (ETF) on Wednesday, Grayscale Bitcoin Trust (GBTC) had a comparatively small outflow of $17.5 million in investments. (Source: Farside Investors data)
According to Grayscale Investments CEO Michael Sonnenshein, the company’s fund is nearly balanced in terms of investments and redemptions.
GBTC Outflows Slow Down
Based on Farside’s figures, GBTC saw significant net redemptions totaling over $450 million on Monday and Tuesday. This resulted in a grand total of approximately $16 billion in withdrawals in the last 3 months. However, the pace of these outflows noticeably decelerated on Wednesday, with only $17.5 million leaving the fund compared to $154.9 million the previous day.
On Wednesday, there were $76.3 million in new investments in Fidelity’s spot Bitcoin ETF, $33.3 million in BlackRock’s IBIT, and $24.3 million in Bitwise’s Bitcoin ETF. Furthermore, Ark Invest’s ARKB experienced an inflow of $7.3 million.
Recently, Bitcoin ETFs based in the United States, such as Grayscale, recorded a total inflow of approximately $123.7 million. This is a positive shift following a day of combined outflows on April 9, which totaled around $19.4 million.
Yesterday, Sonnenshein explained that it’s common to anticipate balancing outflows after a prolonged phase of substantial capital departures. This mass exodus of funds is typically instigated by both switch trades and the distribution of assets from insolvent companies such as FTX.
Benjamin Stani, Matrixport’s business development director, noted that the inflows and outflows of GBTC seem to have settled down, indicating that some forced sellers may have run out of steam. However, Stani issued a warning that these outflows could pick up once more due to the unpredictable trends in ETF weekly flows since their authorization. He emphasized the importance of exercising caution when analyzing this data point, as there have been instances of temporary slowdowns in the past.
Grayscale’s Market Share Has Been Dropping
BlackRock’s IBIT fund managed assets worth $18.2 billion as of Tuesday, coming close to Grayscale’s $23.2 billion. The difference between the two funds has been shrinking as BlackRock’s fund gains more traction. In comparison, Grayscale held around $23.4 billion in assets just two months ago, while BlackRock had only $4.4 billion at that time.
The launch of Grayscale’s ETF began with almost $30 billion in assets under management (AUM). Yet, as reported by Eric Balchunas, a senior ETF analyst at Bloomberg, the decrease in AUM is partly explained by Genesis offloading GBTC shares.
In terms of trading volume, Grayscale’s fund has seen a significant decrease in market dominance. Its share dropped from around 50% when spot Bitcoin ETFs were introduced on January 11, to just 23.5% as of Tuesday.
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2024-04-11 14:16