Since the launch of the American Bitcoin (BTC) spot ETFs, the BTC price has plummeted. It was already clear that the outflow of capital from Grayscale’s GBTC exchange fund had something to do with this.
This has now been confirmed by a study by Bitfinex Alpha, which was published on Monday.


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Deflation of GBTC’s Bitcoin ETF
After the launch of the ETFs, Grayscale’s GBTC stock market began to deflate significantly. This was partly due to selling activity from the insolvent FTX exchange. But high commissions also contribute to this.
In the report, Bitfinex points out the connection between the outflow of capital from the GBTC exchange fund and the Bitcoin price. Bitfinex’s report notes that GBTC has seen up to $4.3 billion worth of Bitcoin outflow.
In contrast, the ETF with the largest inflows is Blackrock’s IBIT, with inflows of $1.82 billion.
Despite the significant outflows, GBTC is still by far the largest Bitcoin spot ETF with a total value of $24 billion. Before converting to a spot ETF, GBTC was valued at approximately $28.6 billion.
FTX sales and high commissions cause BTC to decline
As mentioned earlier, the selling activity of the collapsed crypto exchange FTX was also linked to the outflow from the GBTC fund. According to the report, FTX sold a whopping 22 million GBTC shares, worth a total of $1 billion.
Bitfinex believes that the high commissions that Grayscale charges for the GBTC ETF are also a key reason for the outflow of capital. Grayscale charges 1.5 percent, while its competitors charge commissions between 0.2 and 0.9 percent.
“This higher commission structure could impact investor migration from GBTC to other ETFs, particularly to traditional financial giants that have more experience in managing ETFs.”
Although the outflow from the GBTC fund has clearly had a negative impact on the BTC price, this outflow now appears to be slowing down. On Monday, GBTC outflow was still at $360 million.
Last Friday it was still $450 million. This downward trend in outflows is expected to continue this week.
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