Grayscale's Bitcoin ETF records the lowest outflow since conversion

Grayscale's Bitcoin fund may face another challenge. Bankrupt cryptocurrency company Genesis Global Holdco recently obtained court permission to sell $1.3 billion worth of GBTC shares to repay investor fees. A significant exit from GBTC was expected. The spot Bitcoin ETF was approved by the U.S. Securities and Exchange Commission on January 10, opening the door for GBTC holders to convert and redeem their shares. Previously, investors had to sell shares on the secondary market in order to close positions. Analysts say that in recent weeks, investors have also rebalanced their portfolios towards lower-cost Bitcoin ETFs. GBTC charges a 1.5% annual management fee, while other issuers charge as low as 0.19%.

As previously reported, Grayscale's GBTC fund net outflowed $44.2 million on February 23rd, marking its lowest daily trading volume since transitioning into an ETF.