Grayscale’s GBTC saw a capital outflow of up to 590 million USD on its third day of listing, totaling 1.169 billion USD so far. In addition, Grayscale transferred 9,000 bitcoins to Coinbase last night.
Summary:
Bloomberg analyst: BlackRock Bitcoin Spot ETF “Trading Volume Exceeds” Last Year’s Total of 500 New ETFs.
Background:
Bitcoin’s sharp decline, is it due to Grayscale GBTC selling off?
The US Bitcoin spot ETF achieved impressive results in its first three days of listing. According to Bloomberg ETF analysts, the total trading volume has approached 10 billion USD, with a net inflow of over 800 million USD in the first two days.
However, it appears that GBTC is still experiencing continuous redemption. According to BitMEX Research statistics, GBTC saw a capital outflow of 590 million USD on its third day, bringing the total outflow to 1.169 billion USD.
If this outflow does not flow into other Bitcoin spot ETFs (Grayscale charges a 1.5% fee, higher than other issuers), it may not be good news for Bitcoin’s sustained rise.
Source: BitMEX Research
Grayscale transfers 9,000 bitcoins again
Meanwhile, according to Arkham data, Grayscale’s GBTC trust account transferred 9,000 bitcoins to Coinbase last night, worth 385 million USD. Together with the previously transferred 4,000 bitcoins, a total of 130 million BTC (worth a total of approximately 585 million USD) has been transferred out.
Currently, Arkham estimates that Grayscale’s GBTC still holds 617,000 BTC, worth approximately 26.65 billion USD.
US Bitcoin ETF vs European Bitcoin ETP/ETN
In addition, over the past two days, the four largest European Bitcoin ETPs saw a outflow of 61.4 million USD, indicating that funds seem to be shifting from high-cost European ETPs to low-cost US ETFs. Previously, Circle’s EU Strategy Director, Patrick Hansen, compared the two from the perspectives of cost and safety, and concluded that the US Bitcoin spot ETF is more attractive:
The fees of US Bitcoin ETFs are lower than European ETFs (UCITS). The average fee for the top 10 European ETP/ETN is 1.047%, while the average fee for the top 10 US Bitcoin ETFs (excluding GBTC) is 0.451%, less than half.
European ETPs and ETNs are structured as debt securities, exposing investors to bankruptcy risk. In contrast, capital invested in ETFs is protected and not at risk of loss due to issuer insolvency.
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