Higher-cost crypto funds suffer as spot bitcoin ETFs hit $4 billion of inflows | Headlines | News | CoinMarketCap
01/22/2024 21:09
Higher-cost incumbent crypto fund issuers in the United States have witnessed $2.9 billion worth of outflows since the new spot bitcoin …
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Published on January 22, 2024 13:55 GMT+00:00edited on January 22, 2024 14:01 GMT+00:00
Higher-cost incumbent crypto fund issuers in the United States have witnessed $2.9 billion worth of outflows since the new spot bitcoin exchange-traded funds launched on Jan. 11, according to CoinShares’ latest report.
Grayscale’s GBTC has dominated the outflows, seeing over $2.8 billion exit the fund amid fees of 1.5% and likely profit-taking after converting to an ETF following years of trading at a discount to net asset value. (Discount to NAV means how much lower the market price of each share is than the value of the bitcoin it represents.)
Fees for Grayscale’s converted fund and incumbents, like ProShares’ bitcoin futures ETF (BITO) at 0.95%, are significantly higher than those offered by the new spot bitcoin ETF products — many of which carry reduced or zero fees initially and …