Fidelity’s FBTC Sees Second-Largest Withdrawal Amid ETF Slump
Key findings
- Fidelity’s FBTC has seen a significant withdrawal of funds, the second largest since its inception.
- Grayscale GBTC’s Cumulative Outflows Near $20 Billion Amid Market Problems
US Bitcoin spot exchange-traded funds (ETFs) suffered a major downturn in early September, with a net outflow of $287 million recorded on the first trading day after the Labor Day weekend. data Farside Investors shows. These funds have seen their fifth straight day of net outflows, collectively losing more than $750 million since last Tuesday.
The ETF market has seen a wave of selling pressure since Labor Day, with 8 out of 11 Bitcoin funds reporting negative returns.
The king of outflows, Grayscale’s GBTC, ended the day with a net outflow of over $50 million on Tuesday, but it was Fidelity’s FBTC that stole the spotlight, with the fund seeing around $162 million in outflows, the second-largest since its launch.
Rival bitcoin ETFs managed by ARK Invest/21Shares, Bitwise, Franklin Templeton, VanEck, Valkyrie and Invesco also contributed to the net outflows.
The rest, including BlackRock’s IBIT, WisdomTree’s BTCW and Grayscale’s BTC, reported zero flows.
Grayscale GBTC Net Outflows Near $20 Billion
According to Farside Investors, total outflows from GBTC could soon exceed $20 billion. Despite recent signs of slowing after months of massive selling, the fund is still experiencing capital flight.
The recent fall in the value of Bitcoin has reduced Grayscale Assets Under Management up to approximately $13 billion.
Some of the GBTC outflow was due to the sale of many crypto companies that went bankrupt in 2022 and 2023 and had Grayscale Trust shares on their balance sheets.
As Grayscale CEO Michael Sonnenschein previously stated, after the fund was converted into an ETF, these companies tried to sell their shares to pay off creditors.
Grayscale has lost its leadership in the Bitcoin ETF market to BlackRock. BlackRock’s IBIT ETF has raised nearly $21 billion since its launch, making it the world’s largest Bitcoin ETF.”
