Grayscale Bitcoin Trust (GBTC) has broken the exchange-traded fund (ETF) record for the longest outflow streak, reaching 72 consecutive days. In fact, no ETF in history has seen a streak of redemptions of this length. Furthermore, according to Bloomberg analyst Eric Balchunas, no other ETF has come close.
The streak has made Grayscale one of the worst-performing ETFs ever created. The investment vehicle has seen investors redeem more shares than it has created since it was approved in January. Records show it has witnessed outflows for over ten straight weeks.
Grayscale Bitcoin Trust Breaks ETF Outflow Streak Record
The digital asset industry has placed a great deal of emphasis on the performance of the sector since the start of 2024. A key part of that optimism has been tied to the anticipation of a spot Bitcoin ETF being approved. These investment products were given the green light in January of this year, marking a landmark decision by the U.S. Securities and Exchange Commission (SEC).
However, one of those approved Bitcoin investment products has underperformed its peers. Specifically, Grayscale has seen its spot Bitcoin ETF set a record for the longest outflow streak at 72 days. Indeed, its Grayscale Bitcoin Trust has done something no other ETF has done in history.
Bloomberg analyst Erich Balchunas answered a question on X (formerly Twitter) regarding the GBTC outflow streak. In response, Balchunas noted that the outflow streak put the investment product at the top of the all-time list. Attention then turned to why this was the case.
For the most part, spot Bitcoin ETFs have proven to be a massive success. However, Grayscale’s offering has now witnessed investors redeeming shares for over two months. Many have pointed to the product’s fee as a major reason for its underperformance to date.
When it was first approved, GBTC charged users a fee of 1.5%. That fee was considerably higher than its competitors, with the average fee charged by other options being 0.2%. The company, on the other hand, touted its expertise as a reason for the fee. However, investors have appeared unwilling to pay the premium in a market that increasingly appears to be commoditizing knowledge and expertise.
