Grayscale Bitcoin ETF Sees $21 Billion in Outflows Within a Year
Spot Bitcoin ETF launch in the US achieved $35.5 billion in net inflows within a year, marking a significant milestone in Wall Street's history. In contrast, asset manager Grayscale experienced $21 billion in losses during the same period. Following its conversion of the Bitcoin Trust (GBTC) to a Bitcoin ETF in January, Grayscale faced substantial outflows, with GBTC averaging daily outflows of $89.9 million according to Farside Investors data.
The 10 approved spot Bitcoin ETFs in the US have maintained positive balances, yet GBTC's outflows overshadow investments from other funds. The remaining nine Bitcoin ETFs, excluding BlackRock's IBIT and Grayscale's GBTC, collectively attracted $20.73 billion in net inflows.
A key factor in Grayscale's decline is its high management fees. In contrast, asset managers like BlackRock and Fidelity offer lower fees, attracting more investors. Although Grayscale launched a mini-Bitcoin Trust (BTC) with reduced fees, it failed to gain traction.
BlackRock's iShares Bitcoin Trust (IBIT) significantly outperformed competitors with $35.8 billion in inflows since inception. Its total assets under management (AUM) surpassed $50 billion as Bitcoin prices rose above $100K. IBIT has averaged daily inflows of $153 million and its share price increased by 117% since launch.
Bitcoin ETF Demand Remains High
Following Donald Trump's recent victory, demand for spot Bitcoin ETFs surged, resulting in $12 billion inflows over seven weeks. Bitcoin has risen over 50% since the election.
Analysts predict that Bitcoin ETFs may soon surpass physical gold ETF assets. ETF Store President Nate Geraci stated this possibility depends on future Bitcoin and gold price trends. Physical gold ETFs have existed for 20 years, a milestone that Bitcoin ETFs could soon challenge.