What You Need to Know About Bitcoin Spot ETFs
Ten bitcoin spot ETFs, including Grayscale GBTC, held around 700,000 BTC, according to Glassnode data. Meanwhile, Grayscale announced via its official channels that "assets under management across our crypto family of products (trusts) have surpassed $40 billion." As of April 4, Grayscale manages cryptocurrency trusts including BAT, BCH, LINK, MANA, ETC, ETH, FIL, ZEN, LTC, LPT, SOL, XLM, and ZEC, as well as DeFi, digital large cap, and smart contract platform basket funds. The ETH trust fund, ETHE, has the largest assets under management at approximately $10.59 billion, and Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to convert ETHE into a spot ETF.
On March 4 (local time), GBTC, Grayscale's BTC spot ETF, experienced net outflows of approximately 5,450 BTC. That's approximately $3.68 billion in value. Since listing as a spot ETF on U.S. exchanges on January 11th, GBTC has seen a cumulative outflow of 202,874 BTC. GBTC's BTC holdings have declined by approximately 33% since the ETF conversion. Now that GBTC's outflows have slowed and are starting to increase again, investors should carefully consider why this is happening.
Microstrategy proposed a $600 million private placement of convertible senior notes MSTR, which it said it would use to buy more bitcoin and for general corporate purposes. The MSTR gained about 20% on the day that bitcoin broke through $67,000.
