Grayscale GBTC Outflow Slows as Premium Enters Positive Range

The tides are gradually turning in favor of Grayscale Bitcoin Trust (GBTC) with the Exchange Traded Fund (ETF) now recording positive Premium.

Since the spot Bitcoin ETF products were greenlighted by the US SEC, Grayscale’s GBTC has recorded substantial outflows. The product’s substantially high fees of 1.5%, much higher than others, resulted in an exodus of investors.

The tides are, however, changing with the outflows in reversal mode. CryptoQuant co-founder and CEO Ki Young Ju called attention to this trend change earlier on X.

Grayscale GBTC by the Data

As of the last update from CryptoQuant, Grayscale’s GBTC is the second-largest Spot Bitcoin ETF on the US market by daily trading volume. BlackRock’s IBIT secures first, with a volume pegged at 20,652,092 shares. GBTC’s volume comes in at 12,481,792 shares.

Grayscale's $GBTC outflows are decreasing, and its price premium recently turned positive.https://t.co/vsrtd2gDhS pic.twitter.com/RGKiMHdKGt

— Ki Young Ju (@ki_young_ju) February 12, 2024

However, riding on its advantage as a pioneer in the Bitcoin Trust marketplace, Grayscale far outranks other issuers, including BlackRock and Fidelity Investments, in terms of $BTC holdings.

Notably, Grayscale’s GBTC currently holds 466,534.7901 $BTC. For comparison, BlackRock’s ETF tops 87,779 $BTC, while FBTC from Fidelity holds 73,390 $BTC.

The Premium metric determines if the price of the ETF is trading above its Net Asset Value (NAV), while Discounts indicate if the price is below the NAV. At the moment, Grayscale’s GBTC Premium reading comes in at 0.03. While that of BlackRock and Fidelity are 0.06 and 0.004, respectively.

Grayscale Drag Back and Bitcoin Outlook

Grayscale is an established Web3 giant that is currently facing a significant headwind, especially concerning its parent company, Digital Currency Group (DCG).

Despite the many operational woes the parent firm is passing through, it reported better-than-expected figures in its Q4 2023 revenue which moved from $132 million in 2022 to $210 million in 2023.

The positive uptick was attributed to the recovery in the price of Bitcoin. With the premier cryptocurrency now sailing above the $50,000 range, more upside might be ahead for GBTC and DCG soon.