Summary
TLDR: Outflows from the Grayscale Bitcoin Trust have decreased to new lows since converting to an ETF in January. Grayscale has suffered losses totaling $7.4 billion, with high management fees deterring new investors. Outflows slowed in January, causing a surge in Bitcoin’s price, but picked up again recently. BlackRock’s Bitcoin ETF broke trading volume records, reaching $1 billion in daily volume. Genesis, a bankrupt crypto lender, may be a key player in selling GBTC shares. Bitcoin’s price broke past resistance at $53,000, reaching $54,500.
Key Points
1. Outflows from the Grayscale Bitcoin Trust (GBTC) have decreased to new lows since the fund converted into an ETF in January, with daily outflows reaching their lowest levels in the past 45 days.
2. Grayscale’s fund has experienced continuous losses since converting into an ETF, totaling $7.4 billion. The high management fee compared to rival funds like BlackRock and Fidelity has deterred new investors from buying into Grayscale for Bitcoin exposure.
3. Despite the outflows from Grayscale and the slowing down of Bitcoin’s price surge, BlackRock’s Bitcoin ETF broke daily trading volume records, surpassing $1 billion and garnering institutional consideration.