tl;dr
Bitcoin exchange-traded funds have made a significant impact on the crypto market since January. However, Grayscale’s Bitcoin Trust (GBTC) has experienced consistent outflows, raising concerns about its future. Arkham Intelligence predicts that GBTC could deplete its Bitcoin reserves within 96 days ...
Bitcoin exchange-traded funds have made a significant impact on the crypto market since January. However, Grayscale’s Bitcoin Trust (GBTC) has experienced consistent outflows, raising concerns about its future. Arkham Intelligence predicts that GBTC could deplete its Bitcoin reserves within 96 days at the current rate. Grayscale's CEO attributes the outflows to profit-taking investors and a high fee structure, and the company is exploring initiatives to counteract this trend, including introducing a mini fund and reducing fees.
Arkham Intelligence, a blockchain analytics firm, has forecasted that GBTC could deplete its Bitcoin reserves within the next 96 days if the current rate of redemptions persists. Since its conversion into a spot Bitcoin ETF in January, Grayscale’s Bitcoin balance has plummeted by 266,470 BTC, a significant decline from its initial holding of approximately 620,000 BTC. The downward trend is attributed to consistent outflows from GBTC averaging 25,900 BTC per week. Grayscale's CEO, Michael Sonnenshein, acknowledged the anticipated outflows, attributing them primarily to profit-taking investors and arbitragers exiting the fund. On the other hand, market observers have attributed the GBTC outflows to its high fee structure. Grayscale is exploring various initiatives to counteract this outflow trend, such as introducing a mini fund and reducing its 1.5% fee, which stands in stark contrast to competitors’ rates ranging from 0.2% to 0.5%.
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