Fidelity inflows smash Grayscale outflows as $255 million Bitcoin enters US market
Summary
Grayscale's Bitcoin Trust (GBTC) saw a slowdown in outflows, with around $192 million withdrawn on Jan. 29, the lowest since its inception. Inflows into other funds offset GBTC's outflows, with Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock's IBIT experiencing significant inflows. Despite recent outflows, GBTC remains the top cryptocurrency ETF in liquidity, with a trading volume of $570 million on Jan. 29. The outflows are attributed to profit-taking and the fund's 1.5% management fee, leading investors to shift towards competing ETF providers with lower fees. As a result, Grayscale's ETF's Assets Under Management (AUM) dropped to approximately $21.431 billion from its year-to-date peak of nearly $29 billion.
