Grayscale's Bitcoin Trust Faces $5B in Outflows Despite Dominant Market Position
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Grayscale won approval from the SEC to convert its Bitcoin trust (GBTC) into a spot ETF, but has since seen $5.2 billion in outflows.
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Outflows are attributed to 1) investors seeking lower fees from competing ETFs, 2) FTX liquidating its GBTC position, and 3) investors who were betting on spot ETF approval.
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Despite outflows, GBTC still dominates with over $21 billion in assets, much more than the 10 other approved Bitcoin ETFs combined.
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Outflows may be slowing already, with Monday seeing the lowest daily average since trading began.
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Remaining GBTC investors are likely long-term holders willing to withstand the high 1.5% fee until Grayscale potentially lowers it within a few years.