Key Takeaways
- Grayscale's GBTC could deplete its Bitcoin reserves in 96 days due to consistent outflows.
- The outflows are attributed to GBTC's fee structure and trading activities involving bankrupt firms.
- Grayscale is exploring measures like a mini fund and fee reduction to counteract the outflow trend.
Grayscale’s GBTC is experiencing a significant decline in its Bitcoin holdings.
Analysis from Arkham Intelligence predicts a depletion of Bitcoin reserves within 96 days if the current outflow rate continues.
Factors behind the outflows
The decline is attributed to GBTC’s high fee structure and trading activities involving bankrupt firms.
Grayscale CEO Michael Sonnenshein acknowledged profit-taking by investors and arbitrage exits as primary reasons for the outflows.
Grayscale’s response to the challenge
Grayscale is exploring measures to counteract the outflow trend, such as introducing a mini fund and reducing its 1.5% fee.
Sonnenshein expects GBTC’s fees to decrease as the market matures and the fund grows.
