Despite recent comments from Grayscale CEO Michael Sonnenshein suggesting a potential stabilization, the Grayscale Bitcoin Trust (GBTC) witnessed an outflow of $166.2 million on Friday, April 12.
The high management fees charged by GBTC possibly contribute to these large outflows. At 1.5%, these fees are considerably above the 0.30% average of its competitors, which could be steering investors towards more cost-effective options.
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Data from Farside Investors highlights that since January, when it transitioned to a spot Bitcoin exchange-traded fund (ETF), GBTC has seen over $16.2 billion in outflows. The daily average has hovered around $254.3 million.
Last week, $767 million exited the fund amid a broader slowdown in market inflows for spot Bitcoin ETFs.
Since its inception in 2015 and subsequent conversion to an ETF in January — following the US Securities and Exchange Commission's approval — GBTC has been at the forefront of offering Bitcoin exposure to investors. This transformation came alongside the introduction of nine other spot Bitcoin ETFs.
BlackRock's iShares Bitcoin Trust ETF is also among the leaders, amassing assets under management (AUM) worth over $15 billion and closely competing with GBTC's market share.
As the crypto market matures and investors become more discerning, GBTC's future may hinge on its ability to adapt to lower cost structures and maintain investor confidence amidst growing competition.
In the meantime, Hong Kong is also about to launch its first spot Bitcoin ETFs.
