Key points
- Fidelity’s FBTC faced a significant withdrawal, the second largest since its inception.
- Grayscale’s GBTC Nears $20 Billion in Cumulative Outflows Amid Market Challenges
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ETF investors hit the sell button after returning from the Labor Day holiday weekend.
U.S. spot Bitcoin exchange-traded funds (ETFs) kicked off September trading with roughly $288 million in net outflows on Tuesday. data According to Farside Investors, these funds have experienced their fifth consecutive day of net outflows, collectively losing more than $750 million since last Tuesday.
The post-Labor Day ETF market experienced a wave of selling pressure, with 8 out of 11 Bitcoin funds reporting negative performance.
The king of outflows, Grayscale’s GBTC, closed Tuesday with more than $50 million in net outflows, but attention was focused on Fidelity’s FBTC as the fund saw about $162 million withdrawn, its second-largest outflow since launch.
Competitive Bitcoin ETFs managed by ARK Invest/21Shares, Bitwise, Franklin Templeton, VanEck, Valkyrie and Invesco also contributed net outflows.
The rest, including BlackRock’s IBIT, WisdomTree’s BTCW, and Grayscale’s BTC, reported zero flows.
Grayscale’s GBTC Nears $20 Billion in Net Outflows
According to data from Farside Investors, total GBTC outflows could soon exceed $20 billion. Despite recent signs of a slowdown after months of sell-offs, the fund still sees capital flight.
The recent drop in the value of Bitcoin has reduced Grayscale Assets Under Management to approximately $13 billion.
Some of the GBTC outflows were driven by the sale of many crypto companies that went bankrupt in 2022 and 2023 and had Grayscale’s Trust shares on their balance sheets.
Once the Trust was converted into an ETF, these companies sought to sell their shares to pay creditors, Grayscale CEO Michael Sonnenshein previously said.
Grayscale has lost its leadership in the Bitcoin ETF market to BlackRock. BlackRock’s IBIT ETF has attracted nearly $21 billion since its launch, making it the largest Bitcoin ETF in the world.
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