According to a recent report, investors are opting to make large withdrawals from Grayscale’s Bitcoin ETF, which occurred on Monday and totaled $642.5 million. The price of Bitcoin fell as a result of these events, falling 2% on Tuesday and 4% on Monday.
The outflow began in January, when Grayscale transitioned to a structured product. By now, many investors have begun to believe in the newly launched ETF, which has extremely low costs of approximately 0.25%.
Grayscale’s fund received $1.6 billion in inflows, while outflows were $5.4 billion. The fund remains the largest, with assets of $27.2 billion, down from $29 billion on the first day of ETF trading.
According to Grayscale’s CEO, profit-taking, redemptions, probable arbitrage, and liquidations were the causes of the withdrawals.
Demand for Bitcoin ETFs has usually decreased, with Monday being the slowest day for inflows since late January. The slowing in money outflows indicates that investors have already sold their Bitcoins after their value surged.
