Bitcoin exchange-traded funds (ETFs) have made a notable impact on the crypto market since their launch earlier this year, garnering praise from market observers. However, Grayscale’s Bitcoin Trust (GBTC), a key player in the space, has experienced continuous outflows, sparking concerns about its future.
According to Arkham Intelligence, if outflows from GBTC persist at the current rate, the fund could deplete its Bitcoin reserves within the next 96 days. Since converting into a spot Bitcoin ETF, GBTC’s Bitcoin balance has dropped significantly, falling by 266,470 BTC from its initial holding.
The decline is attributed to consistent outflows, averaging 25,900 BTC per week. Analysts warn that if this trend continues, GBTC could exhaust its Bitcoin holdings in just 14 weeks.
Grayscale’s CEO, Michael Sonnenshein, acknowledged the anticipated outflows, attributing them to profit-taking investors and arbitragers.
However, observers also point to GBTC’s high fee structure as a factor driving outflows. To address this, Grayscale is considering initiatives like introducing a mini fund and reducing GBTC’s 1.5% fee.
Sonnenshein remains optimistic, expressing confidence that as GBTC matures, its fees will decrease, aligning with market trends seen in other sectors.
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