With the start of trading Grayscale Bitcoin Trust (GBTC) as a spot exchange-traded fund (ETF), there has been an intensified outflow of funds, leading to a reduction in AUM by about 5 billion dollars. This decrease occurred between January 10 and 18, when the total assets of the ETF fell from 28.5 billion to 23.7 billion dollars.
One of the reasons for the AUM decline is the drop in Bitcoin price, which is the main asset of the ETF. Over the past week, Bitcoin's price fell by 4%, directly impacting the fund's value.
Following the ETF's approval by the Securities and Exchange Commission, GBTC holders were given the opportunity to convert and redeem their shares for bitcoins, which also contributed to the fund outflow. About 1.1 billion dollars were withdrawn from the Grayscale ETF over three days. Investors actively used the opportunity to reduce commission expenses and take advantage of the discount on shares. Anthony Scaramucci from SkyBridge Capital notes that many GBTC investors are switching to cheaper ETF options, realizing their losses.
Dave Weisberger from CoinRoutes emphasizes that the composition of GBTC holders may play a significant role in the current fund outflow. He points to hedgers seeking discounts and other investors looking to reduce commissions. At the same time, other Bitcoin funds are showing growth, adding 10,667 BTC to their portfolios. Notably, BlackRock acquired about 8,700 BTC for nearly 358 million dollars, contributing to the overall increase in Bitcoin assets of issuers by 440 million dollars.
