Grayscale Exodus Putting a "Lid" On Bitcoin

One ETF is putting a huge damper on Bitcoin's price:

Note that almost every day, Grayscale is the only Bitcoin ETF with net outflows.. while all of the other newly-minted, spot Bitcoin ETFs see persistent inflows.

Here's what that looked like on Thursday:

Bitcoin ETF Net Inflows On March 21, 2024:

BlackRock: $233.4 million

Fidelity: $2.9 million

Bitwise: $12.0 million

Ark: $2.0 million

Invesco: $4.2

Franklin: $3.8 million

Valkyrie: $4.7 million

VanEck: $1.8 million

Grayscale: -$358.8 million

Total: -$94 million

Investors are pulling out of the Grayscale Bitcoin Trust (GBTC) due to its persistent discount to the underlying bitcoin price, which fuels doubts about its conversion to an ETF. High management fees further deter investors, making GBTC less attractive compared to other, more cost-effective cryptocurrency investment vehicles such as the spot ETF.

The good news?

This exodus from a "bad fund" is putting a temporary damper on Bitcoin.

But Grayscale's outflows may be peaking. Once the Grayscale selling subsides, it appears that the remainder of the Bitcoin ETFs are producing steady, and growing inflows.

If the Grayscale "lid" comes off of the market, Bitcoin could be ready to resume its march higher.