Over the past five days, there has been a significant surge in redemptions for GBTC as the Bitcoin halving event approaches. This trend has resulted in a withdrawal of $89.9 million. Since the beginning of the year, this totals up to a massive outflow of $1.6 billion. The high demand for redeeming investments in high-valuation companies suggests a broader shift in investor sentiment towards the market.
Competitors such as BlackRock and Fidelity are set to challenge the $37 million and $18.7 million in investments going towards Gray funds. With their lower fees, these companies have been causing a stir in the market and gaining significant market share. In other words, they’re disrupting the status quo by offering more cost-effective options to investors. Over the past week, Fidelity’s FBTC and BlackRock’s IBIT funds each attracted net inflows of approximately $37 million and $18.7 million, respectively.
However, this situation didn’t persist; by April 18th, BlackRock experienced an outflow that led to approximately $17 billion in withdrawals from investors.
Mike Sonnenshein, CEO of Grayscale, has shared that the company is exploring the possibility of cutting fees and introducing a new Bitcoin offering called “Bitcoin Mini Trust.” This product allows investors to gain access to Bitcoin at a more affordable price than a standard exchange of the cryptocurrency.
Despite this obstacle, institutional investors have grown increasingly interested in Bitcoin. A recent Bitwise report revealed that RIAs and multifamily offices are actively considering adding Bitcoin to their investment portfolios. Furthermore, hedge funds are anticipated to request more Bitcoin as we approach the Bitcoin halving event.
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2024-04-20 01:08