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Grayscale Bitcoin Trust (GBTC) has broken a major record, one that establishes it as an unusually underperforming global Exchange Traded Fund (ETF) product. According to Bloomberg Senior ETF Analyst Eric Balchunas, GBTC has maintained its 72-day outflow spree.
Alex DovbnyaSince spot Bitcoin ETFs were greenlighted in the United States in January, the product has consistently seen investors pulling funds out, but to varying degrees. Balchunas, who has been tracking the trend thus far, noted that no other known ETF in the industry has this kind of record, a statement that has triggered a reaction from the community.
Many attributed the underperformance of the Grayscale Bitcoin Trust to the decisions made by the firm regarding its fees. At inception, while other issuers set a minimal fee, Grayscale noted that it would charge 1.5%. This massive fee compares to the average of 0.2% from its competing ETF issuers.
In defense of this, Grayscale executives noted that the legacies of GBTC and the expertise of its team would make the fees insignificant at the end of the day. From current data indications, observers are seeing this trend as a mega red flag, one that might not favor Grayscale in the near future.
Spot Bitcoin ETF market losing steam?
The spot Bitcoin ETF ecosystem might be said to be losing steam gradually. This position stems from the recent break in the stellar performance of BlackRock’s IBIT thus far. The Bitcoin ETF recorded its first halt in inflow earlier this week, underscoring a likely pivot from risk assets.
The drop came at a time when the price of Bitcoin experienced intense bearish volatility. At the time of writing, the premier asset is changing hands for $63,628.56, down by 2.1% in the past 24 hours. With the bearish Bitcoin outlook, it remains uncertain what the short-term trends of BTC will look like and how it might impact GBTC.
Alex Dovbnya
Dan Burgin
Vladislav Sopov