Heavy outflows and the decline in Bitcoin’s price are driving down the value of GBTC’s portfolio despite solid demand for other Bitcoin ETFs.
Outflows from Grayscale’s Bitcoin Trust (GBTC) intensified in the first days of trading as a spot Bitcoin exchange-traded fund (ETF), contributing to the decline in assets under management by nearly $5 billion.
According to data from YChart and Grayscale, the ETF's total assets dropped from $28.5 billion on Jan. 10 to $23.7 billion on Jan. 18.
Bitcoin’s price decline also explains the drop in AUM. As the underlying asset of the ETF, Bitcoin’s market value has a direct impact on the value of the fund. At the time of writing, Bitcoin's (BTC) price is down 4% over the past week, trading at $40,582, per Cointelegraph data.
