- GBTC, the world’s largest Bitcoin ETF, has seen record outflows totaling $7.4 billion over 30 days since converting to an ETF in January.
- While GBTC continues bleeding assets, other newer spot Bitcoin ETFs that track prices directly have attracted net inflows.
- Ongoing outflows indicate diminishing appetite for GBTC versus competitors, and its closed-end fund structure is less flexible.
Grayscale‘s Bitcoin Trust (GBTC), the world’s largest Bitcoin exchange-traded fund (ETF), has hit a concerning milestone – a full month of consecutive outflows totaling $7.4 billion. This exodus highlights the challenges facing Bitcoin ETFs amid the crypto market downturn.
GBTC’s Outflows Hit Record Highs
GBTC has seen $7.4 billion exit across 30 trading days since converting to an ETF in mid-January. The fund has yet to record a single inflow during this period, according to Bloomberg data. The $2.8 billion outflow in February is the second-largest among all US-listed ETFs.
Other Spot Bitcoin ETFs Attract Inflows
While GBTC bleeds assets, other spot Bitcoin ETFs that launched more recently have attracted net inflows. ETFs tracking Bitcoin prices directly seem to be more appealing to investors compared to GBTC’s closed-end fund structure. The crypto market downturn has also disproportionately impacted GBTC.
Looking Ahead
The ongoing outflows highlight diminishing investor appetite for GBTC amid competition from other Bitcoin ETF products. Its fund structure is also less flexible than newer products. GBTC will need to stem outflows and attract fresh inflows to regain its stature as the dominant Bitcoin ETF. But the macro environment remains challenging.
