Since its inception on January 11, 2024, the Grayscale Bitcoin Trust (GBTC) has experienced a staggering outflow of more than $21 billion, making it the only spot Bitcoin exchange-traded fund (ETF) in the United States to report negative net investment flow. As of December 16, the total outflows from GBTC reached approximately $21.045 billion, indicating a troubling trend where the trust has been losing an average of nearly $89.9 million daily for the past 11 months, as reported by Farside Investors.
In stark contrast, the remaining 10 spot Bitcoin ETFs approved in the U.S. have collectively attracted investments and maintained positive balance sheets. Nine other funds, including the Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and the ARK 21Shares Bitcoin ETF, have secured a total of $20.737 billion in inflows. GBTC’s outflows significantly overshadow the investments from these funds, underscoring the trust’s struggles within the expanding market.
While GBTC has experienced substantial losses, the overall spot Bitcoin ETF market has thrived, reaching an impressive $35.5 billion in total investments in under a year. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) has been a key contributor to this positive performance, with inflows totaling $35.883 billion since its launch, averaging around $153.3 million daily.
The challenges faced by Grayscale are not isolated to its Bitcoin Trust; the Grayscale Ethereum Trust ETF (ETHE) has similarly encountered a downward trend. Since its launch on July 23, ETHE has lost over $3.5 billion in investments within a mere six months. In contrast, other spot Ethereum ETFs are experiencing robust inflows, with the iShares Ethereum Trust ETF and Fidelity Ethereum Fund leading the pack, having drawn in nearly $3.2 billion and $1.4 billion, respectively. This divergence highlights a growing preference among investors for alternatives to Grayscale’s offerings.
