According to U.Today, Grayscale Bitcoin Trust (GBTC) has set a unique record as a global Exchange Traded Fund (ETF) product with an unusually high underperformance. Bloomberg Senior ETF Analyst Eric Balchunas reported that GBTC has sustained a 72-day outflow streak, a record unmatched by any other known ETF in the industry. This trend has been ongoing since spot Bitcoin ETFs were approved in the United States in January, with investors consistently withdrawing funds, albeit at varying rates.
Balchunas's statement has sparked reactions from the community, with many attributing GBTC's underperformance to the firm's fee decisions. At its inception, while other issuers set a minimal fee, Grayscale announced it would charge 1.5%, a significant amount compared to the average 0.2% charged by its competing ETF issuers. Grayscale executives defended this decision, arguing that GBTC's legacy and the expertise of its team would render the fees insignificant in the long run. However, current data trends are being viewed as a major red flag that may not bode well for Grayscale in the near future.
The spot Bitcoin ETF market appears to be gradually losing momentum. This observation is based on the recent break in the stellar performance of BlackRock’s IBIT. The Bitcoin ETF recorded its first halt in inflow earlier this week, indicating a potential shift away from risk assets. This drop coincided with a period of intense bearish volatility in the price of Bitcoin. At the time of writing, the premier asset is trading at $63,628.56, down by 2.1% in the past 24 hours. Given the bearish Bitcoin outlook, the short-term trends of BTC and their potential impact on GBTC remain uncertain.