Grayscale Loses the Crown
A competing ETF has overtaken GBTC in assets under management.
New King. The Grayscale Bitcoin Trust (GBTC) was initially created in 2013 and launched as the largest spot BTC ETF by assets under management thanks to a decade-long head start that allowed it to accumulate nearly $30B in BTC. Yesterday, GBTC’s reign came to an end. Which ETF has taken its place, and what conclusions can we draw from this development?
GBTC had been the preeminent route for TradFi participants to access BTC exposure throughout much of Bitcoin's existence, but fell into decline after the long-awaited launch of spot BTC ETFs, which finally enabled redemptions in mid-January.
Although GBTC trading activity dominated spot BTC ETF volumes for multiple weeks post-conversion, the instrument was plagued with outflows during this period, consistently bleeding hundreds of millions of dollars in BTC daily.
Subscribe for free to continue reading
- Support the Bankless Movement
- Access to thousands of articles
- Complete archive of Bankless episodes
- Embark on free quests in Airdrop Hunter
- Daily alpha in your inbox
Already subscribed? Sign in
Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
