Overview

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Grayscale may be sticking to high fees for its spot Bitcoin (BTC) exchange-traded fund to keep “stuck” holders from cashing out while betting that Bitcoin’s price will There are two impacts on the markets: one, derivatives playing the carry trade a.) buy Bitcoin spot, put it into Grayscale, b.) receive GBTC shares, c.) short BTC futures to hedge risk, d.) Grayscale’s GBTC closes 2025 as one of the hottest pain points of crypto. After a year of spectacular blowups and unexpected disappointments, crypto is trying to brace GBTC regains its value with bitcoin Bloomberg To make matters worse, according to media outlet CoinDesk, the team in charge of FTX's bankruptcy sold a very large Since its launch on January 11, the Grayscale Bitcoin Trust (GBTC) has seen outflows exceeding $21 billion, making it the only spot Bitcoin ETF in the U.S. with a negative net investment flow. After conversion from a closed-end fund to a Spot ETF, GBTC’s treasury (3% of all 21 million bitcoin) has bled more than $4 billion during the first 9 days of ETF Grayscale’s recently launched Bitcoin ETF, GBTC, is witnessing a gradual decline in outflows, as around $5 billion in digital assets are withdrawn from the fund. Despite On crypto publishing platform «Medium» a blogger pointed to another factor in the bearishness around Bitcoin, the Grayscale Bitcoin Trust (GBTC), the world’s largest Since 6 January, Bitcoin's price has remained rangebound in the $39.6k to $44.6k region. Over the past 7 days, the candlesticks have been spending more time towards The size of Grayscale's Bitcoin Trust (GBTC) could pose a potential problem for the entire marketat least according to a UBS report. Grayscale's Bitcoin Trust, which

Is GBTC the Worst Affected Victim of Bitcoin's Bearishness?

The recent volatility in the Bitcoin market has undoubtedly left its mark on various entities within the crypto ecosystem. One name that frequently surfaces in discussions about the impact of Bitcoin's bearishness is Grayscale Bitcoin Trust (GBTC). But is GBTC truly the worst affected victim? Let's delve into the factors influencing GBTC's performance and its role in the broader market.

GBTC's Struggle: A Perfect Storm?

Since its launch as a Spot ETF on January 11, the Grayscale Bitcoin Trust (GBTC) has seen outflows exceeding $21 billion. This makes it the only spot Bitcoin ETF in the U.S. with a negative net investment flow. After conversion from a closed-end fund to a Spot ETF, GBTC’s treasury (3% of all 21 million bitcoin) has bled more than $4 billion during the first 9 days of ETF trading. This paints a picture of significant pressure.

One reason often cited for GBTC's woes is its relatively higher fees. Grayscale may be sticking to high fees for its spot Bitcoin (BTC) exchange-traded fund to keep “stuck” holders from cashing out while betting that Bitcoin’s price will rebound. The size of Grayscale's Bitcoin Trust (GBTC) could pose a potential problem for the entire market according to a UBS report. Grayscale's Bitcoin Trust, which holds a substantial amount of Bitcoin, has experienced considerable outflows.

The Derivatives Carry Trade and GBTC

On crypto publishing platform «Medium» a blogger pointed to another factor in the bearishness around Bitcoin: the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund. One of these factors is derivatives playing the carry trade: a.) buy Bitcoin spot, put it into Grayscale, b.) receive GBTC shares, c.) short BTC futures to hedge risk. As GBTC faces downward pressure, this carry trade can exacerbate the situation.

The FTX Factor

To make matters worse, according to media outlet CoinDesk, the team in charge of FTX's bankruptcy sold a very large holding of GBTC. This undoubtedly amplified the selling pressure on GBTC, further contributing to its struggles.

Gradual Decline in Outflows?

Despite the challenges, there might be a glimmer of hope. Grayscale’s recently launched Bitcoin ETF, GBTC, is witnessing a gradual decline in outflows, as around $5 billion in digital assets are withdrawn from the fund. Despite this, the overall impact of consistent outflows remains a concern.

GBTC: Pain Point of Crypto?

Grayscale’s GBTC closes 2025 as one of the hottest pain points of crypto. After a year of spectacular blowups and unexpected disappointments, crypto is trying to brace for what lies ahead. The performance of GBTC will be a crucial indicator.

Bitcoin's Price Action and GBTC's Fate

Since 6 January, Bitcoin's price has remained rangebound in the $39.6k to $44.6k region. Over the past 7 days, the candlesticks have been spending more time towards the lower end of that range. Whether GBTC regains its value with bitcoin remains to be seen, but its performance is intrinsically linked to Bitcoin's overall trajectory.

Conclusion

While other entities have certainly felt the sting of Bitcoin's bearishness, GBTC's substantial outflows, coupled with high fees, derivative trading pressures, and external factors like FTX's asset liquidation, arguably position it as one of the most significantly impacted players. The future of GBTC hinges on Bitcoin's price recovery and Grayscale's ability to adapt its strategy in the evolving ETF landscape.