The Grayscale Bitcoin Trust (GBTC) has broken an ETF record with its 72-day outflow streak. Indeed, the consecutive day’s mark has not been matched by any exchange-traded fund in history. Moreover, according to Bloomberg analyst Eric Balchunas, no ETF has ever come close to the mark.
That record places Grayscale in rarified air as one of the most underperforming ETF products ever established. The investment vehicle has seen investors pull funds out of the offering consistently since its approval in January of this year. The record shows that it has observed outflows for more than 10 weeks.
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Grayscale Bitcoin Trust Breaks ETF Outflow Streak
The digital asset industry had immensely high hopes for the market’s performance since the start of 2024. A significant part of that optimism was connected to anticipation regarding Spot Bitcoin ETF approvals. The investment products were greenlit in January of this year, denoting a landmark decision from the US Securities and Exchange Commission (SEC).
Yet, one of those approved Bitcoin investment products has underperformed immensely relative to the others. Specifically, Grayscale has seen its Spot Bitcoin ETF break a record with a 72-day outflow streak. Indeed, its Grayscale Bitcoin Trust has done something no other ETF has done in history.
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Bloomberg analyst Erich Balchunas answered an inquiry on X (formerly Twitter) regarding the GBTC outflow streak. In response, Balchunas noted that the outflow streak places the investment product atop the all-time list. Subsequently, all eyes were directed toward why this is the case.
For the most part, Spot Bitcoin ETFs have proven to be a tremendous success. However, Grayscale’s offering has now seen investors pull out funds for over two months. Many had perceived the product fees as a large reason for its underperformance thus far.
When it was first approved, GBTC charted its users a 1.5% fee. That charge is far greater than its competitors, with an average fee of 0.2% being charged from other options. Conversely, the firm noted its expertise as justification for the fees. However, investors do not seem willing to pay the premium in a market that is growing in knowledge and expertise seemingly by the day.