Crypto News – With numerous billions of dollars leaving Grayscale’s GBTC, Bitcoin has fallen more than 15% since the first spot ETFs were introduced last week.
Grayscale GBTC Selling Pressure: ARB Traders Say Another $1.5 Billion Sale is Possible
At least some of those billions came from traders abandoning what was probably a very profitable wager that GBTC’s discount to net asset value (NAV) would narrow. Some of those billions came from investors switching to lower-fee ETFs, and others came from investors taking profits from GBTC’s and bitcoin’s absolute price rises.
It looks like GBTC investors who over the past year had been buying the GBTC fund at a significant discount to NAV to position for its eventual ETF conversion, have been taking full profit post-ETF conversion by exiting the bitcoin space entirely rather than shifting to cheaper spot bitcoin ETFs,
Nikolaos Panigirtzoglou
GBTC Faces Pressure to Lower Fees
According to a report, GBTC is facing pressure to reduce its costs because of the outflows. It stated that the 1.5% fee is still too expensive in comparison to other spot bitcoin ETFs, which could lead to further outflows.
A lot more capital, perhaps an additional $5 billion-$10 billion, could exit GBTC if it loses its liquidity advantage,
the bank
With some charging no fees for the first six months or until a specific asset under management (AUM) target is attained, GBTC is the most expensive ETF among equivalents as of Friday.
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