As GBTC profit selling continues, Grayscale CEO predicts that “other Bitcoin ETFs will hardly survive”

Is it better than other Bitcoin ETFs?

One week after the Bitcoin spot ETF was approved, the total trading volume of the 10 ETFs (as of the 19th) has already exceeded $15 billion.

Meanwhile, continued Bitcoin outflows (redemptions into cash) from Grayscale’s GBTC wiped out a large portion of overall inflows, even as volumes remained at historically high levels. On the 18th trading day (Thursday), there was an outflow of -$582 million from GBTC, and the overall net inflow (flow of funds) was finally +$137 million.

connection:Bitcoin ETF surpasses silver ETF to become second place commodity ETF

Over the past week, outflows from GBTC were recorded at $2.2 billion, putting significant selling pressure on the Bitcoin price. Nate Geraci, president of The ETF Store, Inc., told X: “Between Bitcoin price declines and capital outflows, GBTC has shed approximately $5.5 billion in assets since the ETF conversion,” adding, “1.5%. ”, the estimated annual revenue is $82.5 million.”

Between bitcoin price decline & outflows, GBTC has shed approx $5.5bil in assets since ETF conversion…

From $28.6bil to $23.1bil.

At 1.5% fee, that = $82.5mil in implied annual revenue.

— Nate Geraci (@NateGeraci) January 19, 2024

GBTC is the most expensive of the 10 Bitcoin ETFs and is seen as the cause of profit taking and outflows. ETFs such as BlackRock and Fidelity offer no fees for a certain period of time, after which they range from 0.2% to 0.4%.

However, Grayscale CEO Michael Sonnenshein said that he believes two or three of the new ETFs will “gain some sort of critical mass” in terms of assets under management (AUM), but that other ETFs will “gain some sort of critical mass” in terms of assets under management (AUM). may be pulled out of the market, he said on CNBC, predicting that “other Bitcoin ETFs will hardly survive.” He argued that the reason other ETFs have low fees is “because they don’t have a track record,” and that issuers are trying to attract investors with fee incentives.

“From our perspective, the long-term commitment to the Bitcoin asset class may be called into question.”

Grayscale’s GBTC is a mutual fund that has been in operation since 2015 and was converted from mutual fund status to ETF status with SEC approval last week.

Currently, the most traded Bitcoin ETF is GBTC, with BlackRock’s IBIT and Fidelity’s FBTC following in second and third place, respectively, but there is a difference of about $5 billion between the first and second place. There is. GBTC also has the largest number of Bitcoins (582,134 BTC), followed by BlackRock (25,067 BTC).

Day 5 update with the missing data from last night: https://t.co/2BAwsSP20A pic.twitter.com/5XoE6bjj4Q

— James Seyffart (@JSeyff) January 19, 2024

connection: JP Morgan analysis Will the profit taking of Bitcoin ETF “GBTC” further accelerate selling pressure?

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