Grayscale’s Bitcoin ETF Sees Significant Asset Decline Since Launch

Grayscale’s Bitcoin ETF Sees Significant Asset Decline Since Launch

Grayscale Bitcoin Trust (GBTC) has experienced a substantial reduction in its managed assets, with the volume of Bitcoins under its management declining by almost 50% since its conversion to a spot ETF.

Unlike other issuers such as BlackRock or Fidelity, Grayscale’s investment vehicle launched on the New York Stock Exchange with approximately 619,220 BTC. However, according to Coinglass data, the volume of cryptocurrency in GBTC as of April 16 has dwindled to 311,621 BTC.

Since its launch in January, the value of assets under management (AUM) has declined by 31%, from $28.7 billion to $19.6 billion. This reduction is partly offset by Bitcoin’s 38% price increase since the Jan. 11 launch.

BlackRock’s spot Bitcoin ETF comes close to GBTC in terms of AUM, with $17.2 billion. Meanwhile, the outflow of funds since the GBTC convertible fund’s launch has amounted to $16.38 billion.

On April 15, BlackRock and Grayscale were the only products that saw any movement in funds, with total net outflows from spot Bitcoin ETFs in the U.S. reaching $36.67 million, according to SoSoValue data.

Despite recent statements from Grayscale CEO Michael Sonnenshein about stabilizing outflows from GBTC, withdrawals from the fund have persisted.

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