Summary
TLDR: Grayscale Investments lost $8.4 billion from its Bitcoin Trust since converting it to an ETF, with $600 million in outflows on February 29. Competition is heating up as other financial institutions offer crypto-related products, with reports of US banks launching spot Bitcoin ETFs. Demand for ETFs is affecting the supply of Bitcoin, with anticipation of Ethereum ETF approvals causing ETH price to rise. The Bitcoin halving event may further impact supply and demand dynamics, potentially leading to a price increase.
Key Points
1. Grayscale Investments lost $8.4 billion from the Grayscale Bitcoin Trust (GBTC) since converting it to an exchange-traded fund (ETF) on January 11, 2024.
2. Yesterday’s outflows from the GBTC fund totaled almost $600 million, making February 29 the second largest day of outflows since the US Securities and Exchange Commission approved the ETF. Net outflows from the Grayscale fund now total approximately $8.4 billion.
3. The outflows from Grayscale coincide with increased demand for exchange-traded products from other providers. Investors pulled $610 million from Grayscale alone last week, accompanied by inflows of $436 million into other US Bitcoin ETFs.