Grayscale’s Bitcoin ETF Exodus Reaches $7.4 Billion in First 30 Trading Days

The world’s biggest Bitcoin ETF has reached an inauspicious milestone: an entire month of consecutive outflows.

The $24.2 billion Grayscale Bitcoin Trust (ticker GBTC) has seen a $7.4 billion exit across 31 trading days as of Monday, Bloomberg data show. GBTC has yet to post a single inflow since it converted into an ETF in mid-January.

That stands in contrast to the other nine freshly launched spot Bitcoin ETFs, all of which are sitting on net inflows since trading began. A few different factors explain the dichotomy: while GBTC is by far the largest and most actively traded of its peers, its 1.5% management fee means that it’s also the most expensive offering, with the bulk of its peers charging below 0.3%. Additionally, bankrupt estates such as Genesis Global Holdco LLC have been looking to offload their holdings.

But even with those caveats — including that GBTC didn’t allow for redemptions in its prior structure — it’s surprising to see how consistent the outflows have been, according to Vident Asset Management.

“Most of us in the industry expected to see outflows, we all knew it was coming — these long-term holders that were waiting for the fund to finally convert to get out,” said Amrita Nandakumar, president of Vident Asset Management. “Does it go to 60 days? I don’t think so, but then again, I’m surprised to see it got to thirty.”

GBTC Outflows