Are The Bitcoin ETFs Failing?

TL;DR

• The BTC ETFs appear to be bleeding right now, but it’s really just Grayscale (the other funds are in great shape, pulling in hundreds of millions per day).

Full Story

There’s a narrative spreading right now, that the Bitcoin ETFs are all tuckered out.

(I.e. there’s no more investment dollars flowing into them, and won’t be any time soon).

So let’s shine a light on it all, and see what’s really going on…

The 11 Bitcoin ETFs saw the first consistent run of large daily outflows since they launched at the start of the year (this is true) 👇

But that data is a little murky.

In reality, it’s mostly just one ETF that’s pulling those daily numbers down: Grayscale.

Why? Because they refuse to lower their 1.5% management fee to compete with other offerings, which are mostly 0% for the first year or so, then in the realm of 0.25% p/y.

(So, like 6x cheaper than Grayscale?).

Good news: Grayscale can only bleed so many customers, for so long, before there’s no more to lose.

(At which point the selling will stop → we’ll probably start seeing more daily net-purchasing → which should help to push Bitcoin to new all-time-highs).

The takeaway:

Yeah, the ETFs appear to be bleeding right now — but it’s really just Grayscale. The other funds are in great shape, pulling in hundreds of millions per day.

Nice!