#grayscale ’s spot Bitcoin ETF market share falls to 50%
Grayscale's share of the #BitcoinETF market has dipped below 50% for the first time since the inception of spot Bitcoin ETFs alongside the launch of nine new ETFs in January.
As of March 12, the assets under management (AUM) in Grayscale Bitcoin Trust (GBTC) have fallen to $28.5 billion, representing 48.9% of the total $56.7 billion held across ten U.S. Bitcoin ETFs, according to data from Dune Analytics. On the debut trading day of the ten U.S. spot Bitcoin ETFs, Grayscale's fund commanded about 99.5% of the total AUM.
Consistent outflows from GBTC, averaging $329 million per day last week, have gradually eroded the ETF's market share. Initially, the most significant outflows from GBTC occurred within the first month of Bitcoin ETFs' launch, with approximately $7 billion leaving the fund in just over a month.
However, outflows slowed toward the end of January, prompting some analysts to speculate their potential cessation.
Yet, in mid-February, bankruptcy courts permitted crypto lender Genesis to liquidate roughly $1.3 billion worth of GBTC shares, leading to increased outflows once again. Overall, GBTC outflows have surpassed $11 billion to date, as per Farside Bitcoin ETF flow data.
Grayscale's GBTC, initially a trust, evolved into an ETF after a legal win against the #SEC in August. This shift enabled institutional investors to seize GBTC arbitrage opportunities, either withdrawing funds or reallocating to lower-fee Bitcoin ETFs approved by the SEC.
Growing net inflows into #BlackRock 's IBIT and Fidelity's FBTC ETFs, totaling $16.9 billion, have buoyed market sentiment despite initial concerns over outflows from GBTC. The influx into these funds is seen as a fundamental driver behind Bitcoin's recent price surge to a new all-time high of $72,900 on March 11. IBIT, managed by BlackRock, holds over 200,000 BTC, valued at $14.3 billion.
Source - cointelegraph.com
