Grayscale’s Bitcoin ETF Sees $2.2 Billion in Outflows
Grayscale’s CEO, Michael Sonnenshein, has expressed confidence in the longevity of the firm’s spot Bitcoin ETF, despite seeing over $2.2 billion in outflows just a week after approval. With more than $25 billion in assets under management, Grayscale’s Bitcoin Trust (GBTC) is currently the largest spot Bitcoin exchange-traded fund among the 11 funds authorized by the SEC.
Grayscale’s Higher Fees Will Not Deter Success
Although Grayscale charges higher fees compared to other funds, with fees at 1.5%, Sonnenshein believes this will not hinder its future success. He explained that most of the other approved funds have lower fees because they are new and need to attract investors by offering lower costs.
Grayscale Believes Few Bitcoin ETFs Will Survive
Sonnenshein stated that Grayscale, with over 10 years of experience and a diverse investor pool, has the largest liquidity among spot Bitcoin ETFs. He predicts that less than five Bitcoin ETFs will survive in the long run, and even fewer will reach “critical mass.”
Outflows from Grayscale’s Product
In the first five days since the SEC approved spot Bitcoin ETFs, GBTC has outperformed other products in terms of netflows. However, a significant portion of this volume consists of outflows from Grayscale’s product. On-chain data providers have noticed corresponding BTC deposits into Coinbase Prime accounts, likely for redemption purposes.
BlackRock and Fidelity Reach $1 Billion in Assets
BlackRock and Fidelity have achieved remarkable success with their spot Bitcoin ETFs. Both funds have become two of the fastest in American history to reach $1 billion in assets. BlackRock alone now holds over 25,000 BTC valued at about $1 billion with Coinbase as its custodian.
Hot Take: Bitcoin ETF Landscape Takes Shape
The approval of spot Bitcoin ETFs has sparked significant interest and inflows from investors. Grayscale’s Bitcoin Trust (GBTC) remains the largest spot Bitcoin ETF, despite experiencing outflows. While competition among these funds is fierce, Grayscale’s CEO is confident in the longevity and success of his firm’s ETF due to its experience and investor base. However, with fees being a crucial factor for investors, other funds with lower fees may attract more attention in the long run. It will be interesting to see which Bitcoin ETFs can survive and achieve “critical mass” in the evolving landscape.
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