According to recent report, investors are opting to execute a massive withdrawal of a shocking $642.5 million from Grayscale’s Bitcoin ETF, which took place on Monday. These events sent the prices of Bitcoin down, with the price falling by 4% on Monday and another 2% on Tuesday.
Around January, when Grayscale was transformed into a structured product, the outflow began. By now, many investors have begun to shift their trust to the recently created ETF that has incredibly low fees, roughly 0.25%.
Grayscale’s fund saw $1.6 billion in inflows, while outflows were greater at $5.4 billion. Despite the fact that its assets have decreased from $29 billion on the first day that ETFs were traded, the fund is still the largest with $27.2 billion.
Grayscale’s CEO said that the withdrawals were due to profit-taking, redemptions, potential arbitrage, and liquidations.
Generally, the total market for Bitcoin ETFs has also witnessed a slump in demand, with Monday recorded as the worst day for inflows since late January. The fact that the outflow of money is slowing down indicates that investors have already sold their Bitcoins after they have appreciated in price.
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