The post Why is Grayscale Dumping Bitcoin ? appeared first on Coinpedia Fintech News
Grayscale’s Bitcoin Trust (GBTC) faces substantial outflows, totaling $594 million, amid a crypto market downturn. Simultaneously, Grayscale transferred 9,840 BTC worth $418 million to Coinbase Prime, bringing the total moved to 41,478 BTC since January 12. This action, surpassing $1.7 billion, correlates with handling redemptions, revealing challenges for GBTC.
Expert’s Insight on Grayscale dumping BTC amid ETF redemptions
Ash Crypto, in a recent tweet, chimed in into the intricacies, pointing out that historically, GBTC did not sell Bitcoin but redeemed shares with USD, making it a major BTC holder. However, the approval of the spot ETF has prompted investors to withdraw due to a hefty 1.5% annual management fee, significantly higher than competitors.
Plus, the disappearance of a previous 40% discount on GBTC has led many investors to exit, forcing GBTC to sell BTC to meet redemption requests.
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