Grayscale Sells More Bitcoin: Outflows Continue in Spot Bitcoin ETF

• Despite Bitcoin’s price remaining above $50,000, the last three days have been in the red, causing a 2.65% decrease.
• The infamous Grayscale Bitcoin Trust (GBTC), which caused a bear market after the approval of the Bitcoin Spot ETF, continues to sell Bitcoins.
• The difference in management fees can be a critical factor for investors when choosing among various investment options.

Grayscale Investments, the issuer of the Spot Bitcoin ETF, continues to sell more Bitcoin after experiencing outflows.

Grayscale Sells More Bitcoin Today

Despite Bitcoin’s price remaining above $50,000, the last three days have been in the red, causing a 2.65% decrease. The pre-halving rally supports the cryptocurrency, recovering from the cold days after the listing of ETFs and causing an almost 20% increase in February. However, despite the recent pump, digital asset management company Grayscale is starting to go against the tide.

The infamous Grayscale Bitcoin Trust (GBTC), which caused a bear market after the approval of the Bitcoin Spot ETF, continues to sell Bitcoins. In an observed notable transaction by Arkham, Grayscale conducted a significant Bitcoin transfer on February 23. This transaction involved the transfer of 3,443.1 BTC to the Coinbase Prime Deposit address.

This transfer is particularly noteworthy due to the current Bitcoin price being around $50,920, and it is estimated to have a significant value of approximately $175 million.

The exact reasons for the recent rapid outflows remain unclear. However, a possible explanation could be that traders decided to liquidate their positions to capitalize on profits obtained from the recent increase in market values, especially after locking their assets with the fund for an extended period.

Fee Battle in Spot Bitcoin ETFs

Among U.S.-based spot Bitcoin ETFs, GBTC stands out with a relatively high management fee of 1.5%. This fee is significantly higher compared to competitors like BlackRock’s IBIT, which has a much lower fee of 0.12%. However, BlackRock has announced plans to adjust IBIT’s fee structure and intends to increase it to 0.25% within the next 12 months.

The difference in management fees can be a critical factor for investors when choosing among various investment options because lower fees generally translate to higher net returns over time, making them more attractive for fee-conscious investors like those considering IBIT.