'GBTC Grayscale's GBTC Has Moved More Than 100K BTC To Exchange Since Spot Bitcoin ETF Launch' - CoinDesk
Portfolio Pulse from Benzinga Newsdesk
Grayscale's Bitcoin Trust (GBTC) has transferred over 100K BTC to exchanges since the launch of spot Bitcoin ETFs on Jan. 11. The majority of these transfers were to Coinbase Prime for sale. GBTC reduced its management fee to 1.50%, still higher than competitors, leading to over $1 billion in daily AUM outflows. Bitcoin's price fell below $40,000, influenced by these sales and other factors. FTX's sale of 22 million GBTC shares did not slow the outflow.
January 24, 2024 | 4:59 pm
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NEGATIVE IMPACT
The sale of GBTC assets and the resulting outflows have contributed to the downward pressure on Bitcoin's price, which fell below $40,000.
The significant movement of BTC from GBTC to exchanges for sale has likely contributed to the increased supply and selling pressure on Bitcoin, negatively impacting its price in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
NEGATIVE IMPACT
GBTC has seen significant outflows, transferring over 100K BTC to exchanges, with a daily AUM decline of over $1 billion. The fee cut to 1.5% has not prevented the outflow, which is higher than fees of competing ETFs.
The large outflows from GBTC and the reduction in management fees suggest a negative sentiment among investors, likely leading to a decrease in the trust's value in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100