Grayscale pulls Bitcoin ETFs down

Once again, Grayscale has lost $458.4 million in net flows. The GBTC's Bitcoin losses are not stopping. Is the ETF hype over?

For five consecutive days, American Bitcoin ETF's net outflows. Just last Friday, there was a net inflow of $59.7 million, according to data from Farside Investors.

Still, net outflows over the past week totaled $204.3 million. On Wednesday alone, investors sold $165 million of Bitcoin ETF shares.

Déjà-vu: Responsible for the negative week is the Grayscale Bitcoin Trust (GBTC). The GBTC lost a whopping $458.4 million, making its market share according to Dune now stands at only 36.5 percent.

If Grayscale cannot achieve a trend reversal, the GBTC positions would be exhausted in a few months. The company's Bitcoin ETF suffers primarily from its high fees of 1.5 percent.

This should now change with a new Mini Bitcoin ETF, which Grayscale is to has requested. The spin-off version of the GBTC would have a fee of only 0.15 percent, making it suddenly the cheapest product.

Contrary to the general trend, BlackRock and Fidelity were able to post significant gains. The iShares Bitcoin Trust (IBIT) enjoyed net inflows of $165.4 million and the Fidelity Wise Origin Bitcoin Fund (FBTC) $93.6 million.

The ETF Flipping could take place as early as the next few weeks. BlackRock already owns 273,000 BTC, giving it 32.7 percent market share. Galaxy's Steve Kurz suspects that the ETF hype will really start soon anyway: "Financial intermediaries currently offer Bitcoin ETFs for their clients at only 95 percent."

Despite the small correction, Bitcoin ETFs hold 4.24 percent of the circulating BTC total stock.