Summary
Grayscale Investments experienced net outflows of over $2.2 billion for its Grayscale Bitcoin Trust ETF (GBTC) last week. This comes after the launch of nine other spot bitcoin ETFs in the US. The high fee of 1.5% charged by GBTC, compared to fees of 0.19% to 0.39% for similar offerings, may have contributed to the outflows. Meanwhile, BlackRock and Fidelity Investments saw net inflows of $931 million and $860 million, respectively, for their bitcoin ETFs. Despite the outflows from GBTC, overall crypto investment product trading volumes reached $11.8 billion last week. Purpose Investments, which launched Canada’s first spot bitcoin ETF, also experienced outflows of around $102 million. US products saw $263 million of net inflows, suggesting a migration of assets to the US due to more competitive fees.
Key Points
– Grayscale Investments experienced outflows of more than $2.2 billion last week, offsetting the asset gains made by rival US spot bitcoin ETFs.
– The Grayscale Bitcoin Trust ETF (GBTC), which converted to an ETF earlier this month, has roughly $23.5 billion in assets under management.
– The Grayscale ETF charges a 1.5% fee, significantly higher than other similar offerings in the US that charge between 0.19% and 0.39%.