Spot Bitcoin ETFs attract investor interest despite August outflows

The positive inflows into ETFs from major players like Fidelity and BlackRock highlight the growing confidence in the investment vehicles.

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Strong Bitcoin ETF inflows boost BTC stability, says Bitfinex

The Bitcoin ecosystem recorded consistent high daily closes, massive BTC outflows from crypto exchanges and inflows into the spot Bitcoin ETF market.

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Grayscale Battling Outflows And Lower-Cost ETFs, Q1 Revenue Stays Flat At $156M

Grayscale Investments, the issuer of one of the recently approved spot Bitcoin exchange-traded funds (ETFs) in the US, saw flat revenues in the first quarter of the year due to its decision to maintain fees on its flagship Grayscale Bitcoin Trust ETF (GBTC).  Grayscale Exceeds Expectations Despite Outflows According to a shareholder letter from its [...]

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As Bitcoins Record Highs, Long-Term Holders Drive $2.6B Daily Profit Surge

Bitcoin’s price just doesn’t want to stop climbing. The leading digital currency shot past $73,000 recently, hitting another new all-time high price. But as Bitcoin keeps setting records, some of the investors who’ve been holding it for years are deciding to cash out at these lofty levels. Blockchain data analysts at Glassnode found that around […]

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US Spot Bitcoin ETFs Experience Record Outflows, Losing $740 Million In Three Days

The 10 spot Bitcoin ETFs experienced their biggest three-day outflow since their debut in January, as reported by Bloomberg. This shift in investor sentiment comes after heightened interest that propelled the largest cryptocurrency in the market to a record high of $73,700. Bitcoin ETFs See Record Outflows Between Monday and Wednesday, a net total of $742 million exited the Bitcoin ETFs, reflecting outflows from the Grayscale Bitcoin Trust (GBTC) and a moderation in subscriptions for similar offerings from prominent firms like BlackRock (IBIT) and Fidelity Investments (FBTC). Related Reading: Cardano (ADA) Eyes Explosive 2000% Bull Run, Targeting $12 And Quadrupling ATH According to Bloomberg ETF expert Eric Balchunas, the Grayscale Bitcoin Trust has experienced a notable outflow surge. This recent development indicates a “second wind” of investor withdrawals, with a substantial $1.4 billion leaving the trust just this week.  Notably, these withdrawals have surpassed all other ETFs in year-to-date outflows and set a new record for cumulative outflows in ETF history, as shown in the chart above. Nevertheless, GBTC continues to hold a prominent position in terms of revenue generation. It currently ranks third out of the 3,400 ETFs available, demonstrating its continued financial success. Despite the recent outflows, the overall performance of these funds remains noteworthy, with net inflows of $11.4 billion recorded since their launch, according to data compiled by Bloomberg. This signifies one of the most successful debuts for an ETF category. Crypto Analyst Predicts “Massive Bounce” For BTC Bitcoin experienced a significant surge of over 5% in the United States on Wednesday, propelled by signals from the Federal Reserve (Fed) hinting at potential interest-rate cuts.  However, the Asian market painted a different picture on Thursday, with Bitcoin losing momentum compared to continued gains in global stocks and gold. According to Bloomberg, the news of outflows from Bitcoin ETFs permeated markets, contributing to the contrasting performance. Related Reading: Dogecoin Price Holds Crucial Support But Can DOGE Clear This Hurdle? Nonetheless, renowned crypto analyst Michael van de Poppe shared a bold prediction on social media platform X (formerly Twitter). In his post, he expressed optimism about a “massive bounce” for Bitcoin, suggesting the potential for a continuation of its upward trajectory.  Van de Poppe also predicted that Bitcoin could consolidate in the near term before embarking on another rally towards the all-time high it reached before the halving event, which is expected to begin sometime in April. Currently, BTC is trading at $66,200, reflecting a 4% increase in the past 24 hours despite ongoing outflows in the ETF market. Over longer time frames, Bitcoin has shown consistent gains, with a 27% increase over the past thirty days and an impressive 136% gain year-to-date. Featured image from Shutterstock, chart from TradingView.com

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Record-Breaking GBTC Outflows Send Bitcoin Down 14% To $62,000

As reported by Fortune Magazine, the cryptocurrency market has been experiencing significant volatility as Bitcoin (BTC) has experienced a sharp decline that has had a domino impact on other cryptocurrencies. The recent drop in the price of Bitcoin, coupled with outflows from Grayscale’s GBTC, has raised concerns among investors.  Bitcoin Sees 14% Correction From ATH Bitcoin suffered a 14% drop since reaching its all-time high (ATH) of $73,700 last week, briefly touching $62,483 on Tuesday morning. However, it recovered and stabilized around $64,900, just below the $65,000 mark.  Related Reading: AVAX Price Soars To Highest In Nearly 2 Years, Over 80% Of Holders In Profit The decline was attributed to record outflows of over $640 million from Grayscale’s Bitcoin Trust (GBTC). In comparison, other spot Bitcoin ETFs saw inflows of less than $500 million, resulting in a net outflow of $15 million on Monday, according to Bloomberg ETF expert James Seyffart.  This outflow from GBTC, combined with the cautious sentiment surrounding the Federal Open Market Committee (FOMC) meeting in the US, has had a significant impact on Bitcoin’s performance. As recently reported by NewsBTC, investors exhibited caution ahead of the FOMC meeting, closely monitoring the potential changes in interest rates. Recent higher-than-expected inflation data, as indicated by the US Consumer Price Index (CPI) and Producer Price Index (PPI), dampened expectations of interest rate cuts.  According to Fortune, the CME FedWatch Tool projected a 99% likelihood of rates remaining unchanged, further affecting market sentiment. Per the report, investors were keen to gauge the Federal Reserve’s stance on monetary policy, contributing to the cautious trading environment. In the same context, the Bank of Japan raised its key interest rate from -0.1% to 0% to 0.1% in response to rising consumer prices. This was the first rate increase in 17 years. Crypto Futures Traders Take A Hit The drop in Bitcoin’s price had a cascading effect on other cryptocurrencies. Major altcoins like Ethereum (ETH) and Solana (SOL) experienced significant declines of 8.1% and 12.5% over the past 24 hours, respectively.  Meme coins, including Floki Inu (FLOKI), Bonk Inu (Bonk), and Dogecoin (DOGE), also suffered losses of 34%, 28.5%, and 24.8%, respectively, during the past week.  Related Reading: Dogecoin Growth Hits Roadblock As Holder Activity Enters Dreaded Period Of Stagnancy The decline in cryptocurrency prices resulted in over $440 million worth of liquidations for traders of crypto futures. Traders who had leveraged positions betting on higher prices faced significant losses. Most of these liquidations occurred on Binance, totaling $212 million, followed by OKX at $170 million.  Despite its price correction, BTC retains substantial gains of over 26% and 132% in the past thirty days and year-to-date timeframe, respectively. Featured image from Shutterstock, chart from TradingView.com

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Grayscale introduces mini Bitcoin ETF to alleviate investor tax burdens and curb outflows

Grayscale, the issuer of the world’s largest Bitcoin exchange-traded fund (ETF), has applied for a smaller version of its popular Grayscale Bitcoin Trust (GBTC) ETF under the “BTC” ticker, according to a Mar. 12 filing with the US Securities and Exchange Commission (SEC). Grayscale said: “This would be net-positive for existing GBTC investors, who would […]

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FTX Debtors Sue Grayscale Investments And Its Executives

Grayscale’s CEO as well as owners Digital Currency Group and Barry Silbert allegedly violated trust agreements, according to the lawsuit.

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DCG Sells Shares in Grayscale Crypto Trusts at Steep Discount to Raise Funds for Genesis Creditors

DCG focuses on the Ethereum trust and sells $8 per share, despite each share’s claim to $16 of ether.

Continue reading DCG Sells Shares in Grayscale Crypto Trusts at Steep Discount to Raise Funds for Genesis Creditors at DailyCoin.

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Grayscale CEO Believes SEC Leashing Crypto Hampers Its Growth

Undoubtedly, US regulators have taken steps to safeguard bitcoin investors. But lately, a lot of red flags have been raised by neighborhood residents. There were rumors that something “huge” would be announced when the Department of Justice first said it would “announce a major, international cryptocurrency enforcement action.” That wasn’t the case, though. Community members […]

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Potential Paths Forward For The Grayscale Bitcoin Trust

An interesting saga is developing for Digital Currency Group and its Grayscale Bitcoin Trust with accusations of fraud coming from the co-founder of Gemini.

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Valkyrie Investments Wants To Take Over Grayscale Bitcoin Trust, Reveals Plans

The state of the Grayscale Bitcoin Trust (GBTC), the largest BTC trust in the world, has sparked concerns among investors in the space. With such a large discount to net asset value (NAV), there have been discussions on where the fund goes from here and if it is in trouble. Valkyrie Investments has now joined the conversation but is taking an entirely unexpected route. Valkyrie Wants The Grayscale Bitcoin TRUST In a statement that was released on Dec. 28, co-founder and CIO of Valkyrie Investments Steven McClurg revealed the company’s interest in taking over the management of Grayscale Bitcoin Trust. The statement highlights the unique challenges that are being faced by the GBTC and present the Valkyrie team as the best to manage the fund. Related Reading: Bitcoin Investor Sentiment Remains Steady As BTC Stalls At $16,000 It points to its experience in managing its own bitcoin fund, which it says has been operating with daily liquidity since it was launched a year ago. In addition, it also puts forward its experience with its multiple publicly traded BTC ETFs that were launched in 2021 as a good reason for why it would be a good fit. “We understand that Grayscale has played an important role in the development and growth of the bitcoin ecosystem with the launch of GBTC, and we respect the team and the work that they have done,” the statement said. However, in light of recent events involving Grayscale and its family of affiliated companies, it is time for a change. Valkyrie is the best company to manage GBTC to ensure its investors are treated fairly.” The company also announced a brand new fund called the “Valkyrie Opportunistic Fund, LP” which it says was created to help investors take advantage of the GBTC discount to NAV. “we are very interested in realizing the true value of the underlying bitcoin for our investors and will actively pursue this goal on their behalf,” McClurg said. GBTC sells trading at $8.11 | Source: Grayscale Bitcoin Trust (BTC) on TradingView.com The Roadmap To Success Valkyrie’s statement also included its plan to actually improve the management of the Grayscale bitcoin trust if it were to take over. These were divided into three points. The first was that it plans to facilitate orderly redemptions for investors at NAV when they want it through a Regulation M filing. According to the statement, this would allow the investors to redeem shares without delays and at a fair price. Next was the plan to lower the fees associated with the fund. Valkyrie wants an over 50% reduction in the fee to fit in with best industry practices. As such, it plans to reduce the fee from 200 basis points to 75 basis points. Related Reading: Santiment: Bitcoin Will Trend Lower Because Whales Are Still Selling Last but not is the fact that Valkyrie wants to honor investor share redemptions in both BTC and cash. Its reasoning behind this was that it believes that it gives investors “greater flexibility and choice when it comes to redeeming their shares.” McClurg closes out the statement with a call for the statement to be considered. “We are committed to putting the interests of GBTC shareholders first, and we have the experience and expertise to do so effectively,” the co-founder said. The GBTC discount to NAV remains high despite some recovery recorded as 2022 drew to a close. It had reached a high of 48.57% on Dec. 16 but by the end of the day on Friday, Dec. 30, the GBTC discount had fallen to 45.17%. Featured image from Bloomberg, chart from TradingView.com

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Valkyrie Wants To Take Up The Reins Of Grayscale’s Bitcoin Trust

Valkyrie Investments has laid out a proposal to become the new sponsor and manager of Grayscale’s troubled bitcoin trust (GBTC) and fix its large discount.

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Grayscale Might Consider Tender Offer If It Fails to Convert GBTC Fund into ETF

CEO Michael Sonnenshein said a tender offer would be for no more than 20% of the outstanding shares of GBTC.

Continue reading Grayscale Might Consider Tender Offer If It Fails to Convert GBTC Fund into ETF at DailyCoin.com.

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Why The GBTC Discount Could Lead To A Bitcoin Sell-Off

Grayscale Bitcoin Trust (GBTC) remains the largest bitcoin trust in the world with billions of dollars worth of BTC, but in the last year, the trust has had a hard time keeping up with the market. The result of this has been a large premium that has continued to widen through the bear market. Currently, the GBTC is trading at a record-high premium, which has sparked speculations of a potential BTC sell-off in the pipeline. GBTC Nears 50% Premium The month of November was fraught with adversity for the crypto space and this is mirrored by the GBTC premium. It shows a near-steady increase in the discount or premium to NAV which has carried on into the month of December. On Dec. 7, the GBTC premium to NAV saw one of its largest jumps when it move from 43.61% on Dec. 6 to 47.27% on Dec. 7. This has brought the premium to new all-time highs and even though the following days did not see as large of an increase, a near 1% increase each day saw the GBTC close out last week at a premium to NAV of 48.62%. Related Reading: Inconsistent Metrics Indicate Further Struggle For SUSHI – Colder Winter Ahead? Now, what this means is that the price of ‘one BTC’ is trading for 48.62% lower on the GBTC than it is on the spot market. Normally, this would present as an opportunity to buy for cheap but GBTC investors are not buying any actual bitcoin, and with the issues that Grayscale’s parent company, DCG, has been facing, it has become increasingly obvious to investors that the fund may be headed for trouble. Will This Lead To Bitcoin Sell-Off? The GBTC currently holds more than 640,000 BTC worth around $11 billion at today’s prices. As such, the speculations about a potential collapse do not stem from concerns about Grayscale itself but about its parent DCG company. DCG is reportedly in a $2 billion debt, most of which stems from Genesis Trading which had limited withdrawals a few weeks ago, and Eldridge. Rumors circulating on the interwebs are that DCG actually GBTC shares to collateralize its loan from Genesis, which makes up the large majority of its loan. GBTC share price at $8.01 | Source: Grayscale Bitcoin Trust (BTC) on TradingView.com On a recent episode of ‘The Chopping Block’, Haseeb Qureshi, Managing Partner at Dragonfly Capital, said that the $1.1 billion promissory note to Genesis could be “callable. What this means is that if Genesis were to be liquidated or go into bankruptcy, then DCG would be required to pay the total value of the loan. The problem is that DCG does not have the needed amount to honor it if this does happen. Subsequently, DCG could look towards GBTC for a bailout if this were to happen. Related Reading: Bitcoin Drops Below $17,000 Pre-CPI And FOMC – Scenarios To Prepare For This Week Nevertheless, the GBTC continues to hold up through adversity. Coinbase has previously publicly stated that it holds all of GBTC’s bitcoin in its custody service, and if prices were to start recovering from here, then the premium to NAV could begin to close.

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Here’s Why Grayscale is Being Sued For Allegedly Mismanaging Its GBTC

Grayscale Investments is the target of a lawsuit brought by hedge fund Fir Tree. To look into “possible mismanagement and conflicts of interest” at its $10.7 billion Bitcoin fund, it is requesting information. The information sought might be used to compel the firm to alter how its flagship Bitcoin Trust—GBTC—is managed. According to a recent […]

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Cathie Wood’s ARK Invest Acquires $1.4M as It Rises from Record Lows

Asset management firm ARK Invest is placing a significant buy order for shares in Bitcoin (BTC) companies.

Continue reading Cathie Wood’s ARK Invest Acquires $1.4M as It Rises from Record Lows at DailyCoin.com.

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Bitcoin (BTC) Falls to 2-Year Low on Genesis Bankruptcy Fears

Traders fear that the collapse of Genesis could prolong the crypto winter even further.

Continue reading Bitcoin (BTC) Falls to 2-Year Low on Genesis Bankruptcy Fears at DailyCoin.com.

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Grayscale Bitcoin Trust (GBTC) Falls to New Lows

Shares of GBTC have seen a significant price drop, as FTX collapse puts its sister company Genesis Global at risk.

Continue reading Grayscale Bitcoin Trust (GBTC) Falls to New Lows at DailyCoin.com.

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Grayscale fires first salvo in case against SEC over Bitcoin ETF refusal

The SEC must submit its brief by Nov. 9. After that, Grayscale will then submit a reply brief on Nov. 30 before both parties submit a final brief on Dec. 21.

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