Ramazan Eles 
Throughout April, daily outflows from the Grayscale Bitcoin ETF (GBTC) fluctuated between lows of $75 million and highs of $300 million. Total outflows for the week surged past $767 million.
The depletion of Bitcoin holdings in the Grayscale Bitcoin ETF (GBTC) shows no signs of stopping, with outflows continuing to increase. On Friday, April 12, GBTC outflows soared past $166 million, resulting in over 2,500 Bitcoin being removed from the fund’s holdings.
GBTC Outflows Surpass $16 Billion
According to data from Farside Investors, GBTC outflows have now exceeded a remarkable $16.2 billion since the launch of the Bitcoin ETF earlier this year in January. Throughout April, daily outflows from GBTC have been volatile, ranging from lows of $75 million to highs of $300 million. Meanwhile, inflows into Bitcoin ETFs overall have been subdued, indicating declining investor participation.
In contrast, outflows from GBTC this week have reached a staggering $767 million. Consequently, overall flows into Bitcoin ETFs this week have been negative, with GBTC significantly impacting the trend.
On the other hand, BlackRock has remained steadfast, with assets under management for the IBIT Bitcoin ETF surpassing $15 billion. As a result, BlackRock has substantially narrowed the gap in Bitcoin reserves with Grayscale. It’s highly likely that the majority of GBTC outflows have been directed towards BlackRock.
Are Outflows Truly Reaching an ‘Equilibrium’?
Earlier this week, Grayscale CEO Michael Sonnenshein suggested that outflows from the Grayscale Bitcoin Trust (GBTC) could be stabilizing after a prolonged period of investor selling. While his remarks conveyed optimism, current data indicates otherwise.
One of the primary reasons for significant GBTC outflows has been the high management fee charged by the fund. Despite losing flows to competitors, Sonnenshein has been hesitant to reduce the fees.
Sonnenshein noted that over time, products undergo a maturation process, leading to market consolidation as investors allocate funds to select products. “That means fees also come down over time. We’ll reduce fees on GBTC, and that also means that we’re kind of at the end of that first inning of that first wave of adoption,” he said.