Ever since the approval of the spot Bitcoin ETFs in the market, the Grayscale Bitcoin Trust(GBTC) has witnessed systematic outflows amid capital rotation to other Bitcoin ETFs by BlackRock and Fidelity that offer a lower fee advantage.

Grayscale Opens Private Placement Subscriptions for Altcoin Trusts

According to insights provided by crypto analyst Colin Wu, Grayscale has initiated private placement subscriptions for select cryptocurrency trusts, accessible to accredited investors.

These trusts include Grayscale Bitcoin Cash Trust, Grayscale Chainlink Trust, Grayscale Litecoin Trust, Grayscale Solana Trust, and Grayscale Stellar Lumens Trust. Investors will have the opportunity to subscribe based on the net asset value of each trust.

Grayscale introduced these products to the market over the last few years. It offered institutional players exposure to different crypto assets amid the lack of regulation in the market.

However, one factor that has kept institutional players away from Grayscale products is the high management fee. This is one of the major factors behind the massive outflows witnessed by the Grayscale Bitcoin ETFs over the last month.

After a drop in the GBTC outflows earlier this week, they have gained momentum once again. On Wednesday, the total GBTC outflows stood at $131 million, as per data from Farside investors. However, the net inflows from other big players like BlackRock and Fidelity have outpaced the GBTC outflows, thereby supporting the upward Bitcoin price action.

#Bitcoin spot ETF flows through month one:

+50.6k $BTC of net inflows, including ~150k $BTC being drained from Grayscale.

HUGE. pic.twitter.com/REpsknih3j

— Dylan LeClair 🟠 (@DylanLeClair_) February 9, 2024

Bitcoin ETF Inflows At New Highs

Cameron Winklevoss, co-founder of Gemini, expressed optimism about the impact of Bitcoin ETFs on market dynamics, highlighting their role in reducing available supply. According to Winklevoss, Bitcoin ETFs are currently absorbing ten times more Bitcoin from the market daily than are being newly minted.

He further emphasized that if this trend persists post-Halving, Bitcoin ETFs could potentially remove twenty times more Bitcoin from circulation daily compared to the newly minted supply. Winklevoss conveyed his approval of this development, indicating optimism for the future trajectory of Bitcoin.

However, on Wednesday, February, the Bitcoin ETF inflows tanked by 50% from the highest count a day before. The total inflows into bitcoin ETFs on Wednesday stood at $339 million, down from $631 million a day before.



Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision