With the Bitcoin price falling since its peak, the hot spot Bitcoin ETF market also appears to be cooling down.
Bitcoin is currently trading Still, it remains well below the 2021 all-time high of $69,044. Flip Last week, silver’s market capitalization soared to new levels, exceeding $73,000 per coin.
One reason? Huge amounts of capital still flowing outside ~ Of Grayscale’s Bitcoin Trust (GBTC). The new exchange-traded funds (ETFs) have evolved from the essentially closed-end funds that have been available for many years.
As an ETF, it is easier for investors to redeem the shares and take the profits home. It’s just been that way..
In fact, GBTC had the largest outflow of any ETF since March 2009, at over $12 billion. according to These statistics were shared on Twitter by Todd Sohn, ETF and technology strategist at Stratgas Securities.
As an ETF, why is this movement happening in just two months? Son Heung-min shared his opinion as follows: decryption“There are undoubtedly a few variables at play here, fees being one with some remaining holders wanting to exit this vehicle for cheaper ETFs,” he explains.
Investors are leaving GBTC because it charges higher fees than other funds. The topic of fees is hot thingGrayscale is contaminated Offers another Bitcoin ETF with lower fees.
This month too, fund manager VanEck temporarily removed To attract more customers, we have charged fees for Bitcoin ETFs.
But despite massive grayscale outflows, investor interest in Bitcoin ETFs “never diminishes,” Son added. That’s because the other nine ETFs are still receiving significant inflows.
“The locomotive is still running and there is still great demand,” he said, adding that Bitcoin’s current downward momentum is not a cause for concern.
Edited by Ryan Ozawa.
