Experts suggest that traditional financial institutions looking to enter the Bitcoin ETF market may choose to acquire the cryptocurrency asset management company Grayscale. This would enable them to quickly expand their asset management scale and gain knowledge in the field of cryptocurrency business management.
Background:
Grayscale’s GBTC saw an outflow of nearly $4 billion in eight days. Bloomberg analysts estimate the outflow rate to be between 20% and 35%.
CoinShares announced the acquisition of Valkyrie Funds, giving them access to Bitcoin spot, futures, and mining enterprise ETFs.
The approval of multiple Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) is seen as a milestone in traditional finance’s acceptance of cryptocurrencies. It is expected to attract more funds into the cryptocurrency market.
BDE Ventures: Grayscale may be acquired by traditional financial institutions
Brian D. Evans, founder of BDE Ventures, believes that Grayscale, which has obtained SEC approval to convert its Bitcoin Trust GBTC into a Bitcoin spot ETF, is very likely to be acquired by traditional financial institutions competing for the Bitcoin ETF market.
Nate Geraci, President of consulting firm ETF Store, also expressed a similar view.
James Seyffart, ETF analyst at Bloomberg, pointed out that Grayscale’s GBTC saw an outflow of nearly $4 billion in eight days.
Since the approval of Bitcoin spot ETFs, the price of Bitcoin has been continuously declining. On January 23, it dropped below $39,000, hitting a new low since December last year. It is widely believed that this is due to Grayscale GBTC investors continuously taking profits, as the trust was trading at a significant discount and had high management fees.
According to data from BitMEX Research, on the eighth trading day of Bitcoin spot ETFs, there was a net outflow of $487 million. In the first eight days, there was a net inflow of $601 million. On the eighth day, GBTC saw a net outflow of $515.3 million, with a total net outflow of $3.963 billion in eight days.
However, the outflow of $515.3 million from GBTC on the 24th was lower than the $640 million on the 23rd. The discount of GBTC relative to its net asset value has also significantly decreased (currently at a discount of 0.11%), suggesting that the selling pressure on GBTC is reducing.
Related Reports:
Bitcoin spot ETF’s “first-day trading volume” exceeded $4.6 billion, with Grayscale GBTC leading the way, followed closely by BlackRock.
Wall Street banks: SEC reluctant to repeat the “defeat of Grayscale,” forced to approve Bitcoin spot ETF by January 10.
Competing for the spot ETF pie: Goldman Sachs wants to become an underwriter for BlackRock and Grayscale GBTC trading.