Bitcoin ETFs are breaking all records despite GBTC ETF outflows which could soon intensify due to sales from the Gemini exchange.
Bitcoin ETF > Gold ETF
Bitcoin ETFs are off to a flying start. No commodity-backed ETF did better in its first month of existence. The 5 billion dollars (net) absorbed sweeps away the 2004 record established by the famous Gold ETF (GLD).
For comparison, it took 250 trading days (or almost a year) for the GLD ETF to reach $5 billion. Or ten times longer. Knowing that this comparison carried out by NYDIG takes into account the updated value of 2004 dollars.
These numbers would be much more impressive without the outflows from Grayscale’s $7 billion GBTC ETF. Particularly because of the liquidations of shares of the bankrupt FTX exchange.
This first month is still a resounding success. Bitcoin ETFs attracted the equivalent of $2.3 billion last week alone. The BlackRock ETF alone swallowed more than any of the other 3,400 ETFs.
On last Friday alone, the 9 new ETFs purchased the equivalent of:
-100% of bitcoins sold by the GBTC ETF.
-100% of the 900 bitcoins mined that day.
-6,054 additional bitcoins.
If we put aside the sales of the GBTC ETF, the ETFs gobble up around 40,000 bitcoins per week. That is to say six times the rate of issuance of new bitcoins. It will be twelve times from the halving.
Another very interesting development: American gold-backed ETFs are hemorrhaging. They have seen total outflows of $2.1 billion since the launch of Bitcoin ETFs:
As a result, gold is down 2% since the start of the year. Bitcoin is up more than 25%…
Renewed GBTC exits on the horizon?
Last Tuesday, the Genesis bankruptcy judge gave the green light to liquidate Genesis’ holdings in the GBTC ETF and other Grayscale funds.
The move paves the way for the sale of 36 million shares in the GBTC ETF valued at $1.7 billion. When ? We do not know. The exact modalities and timetable remain uncertain…
Genesis will either be able to sell its shares on the secondary market or request reimbursement in dollars directly from Grayscale. Whichever method you choose, NYDIG believes it will likely ultimately result in bitcoin sales.
Cumulative outflows from the GBTC ETF have already reached $7 billion and seem to be accelerating again in recent days:
Gemini owns an additional 31 million shares ($1.4 billion) as collateral for a loan taken out by Genesis under its “Earn” program.
“While it is inevitable that these shares will change hands at some point, the exact timing of this transaction also remains unknown.”said Greg Cipolaro, global head of research at NYDIG.
The exchange Coinbase For its part, Gemini’s sales will not disrupt the market. “We believe that a large portion of these funds will likely remain in the cryptocurrency ecosystem, contributing to an overall neutral effect on the market”we can read.
This money will certainly find its way back into bitcoin. But this will result in downward pressure in the short term. Despite this small downside, the planets continue to align for bitcoin.
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