- Following the introduction of Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) has been experiencing consistent outflows.
- According to insights provided by Colin Wu, Grayscale has initiated private placement subscriptions for specific cryptocurrency funds open to accredited investors.
- Cameron Winklevoss, co-founder of Gemini, expressed optimism about the impact of Bitcoin ETFs on market dynamics.
Grayscale is taking new steps in altcoin funds after the massive inflows in spot Bitcoin ETFs.
Grayscale Takes Action for Altcoin Products
Following the launch of Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) has been experiencing continuous outflows. Investors are reallocating capital to alternative Bitcoin ETFs offered by BlackRock and Fidelity, which provide cost advantages with lower fees.
Crypto analyst Colin Wu’s insights reveal that Grayscale has initiated private placement subscriptions for specific cryptocurrency funds open to accredited investors. These funds include Grayscale Bitcoin Cash Trust, Grayscale Chainlink Trust, Grayscale Litecoin Trust, Grayscale Solana Trust, and Grayscale Stellar Lumens Trust. Investors will have the opportunity to subscribe to each fund based on its net asset value.
Grayscale introduced these products to the market a few years ago, offering institutional players exposure to different crypto assets in a regulatory uncertainty environment. However, a significant factor keeping institutional players away from Grayscale products is the high management fee. This has been a key factor behind the substantial outflows witnessed in Grayscale Bitcoin ETFs in the past month.
After a decline in GBTC outflows earlier this week, outflows regained momentum. On Wednesday, total GBTC outflows were recorded at $131 million, according to Farside Investors’ data. However, net inflows from other major players like BlackRock and Fidelity surpassed GBTC outflows, supporting Bitcoin price movements.
Bitcoin ETF Inflows Reach New Highs
Cameron Winklevoss, co-founder of Gemini, expressed optimism about the impact of Bitcoin ETFs on market dynamics, emphasizing their role in reducing the current supply. According to Winklevoss, Bitcoin ETFs are currently absorbing ten times more Bitcoin on a daily basis than what is generated in the market.
He also highlighted that if this trend continues after the Halving, Bitcoin ETFs could potentially remove twenty times more Bitcoin from circulation on a daily basis. Winklevoss expressed optimism about the future of Bitcoin, confirming this development.
However, on Wednesday in February, Bitcoin ETF inflows showed a 50% decrease from the highest number reported the day before. Total Bitcoin ETF inflows on Wednesday dropped to $339 million from the previous day’s level of $631 million.
