When they allowed companies to start Spot bitcoin etf’s some of the companies had lower fees. Greyscale did lower their fees from 2 percent to 1.5 percent when they exchanged their bitcoin trust into an ETF but this didn’t stop people from selling out of GBTC. Especially when you can get a bitcoin ETF like BITB with an expense ratio of .20 percent. I suspect we will see more people sell out of Greyscale. Also I suspect alot of people sold on the news to lock in profits.
** Grayscale Destroyed Bullish Crypto Momentum, But Not for Long**
Greyscale was selling at a discount to the NAV, so a lot of people bought it for the arbitrage opportunity. When it was converted to an ETF, there was an enormous sell off as people were taking profits. Some of those profits were converted to other, cheaper ETFs. But a lot of took took the opportunity to exit the space entirely. Overall, more money flowed out of Bitcoin ETFs last week than flowed in.
In the prior week, crypto funds saw $1.25 billion in inflows after the launch of 10 spot Bitcoin exchange-traded funds in the US. Grayscale Investment’s spot Bitcoin exchange-traded fund (GBTC) drove the decline in the most recent week, with $2.2 billion in withdrawals.
Bloomberg - Archive Link
In the long run that won’t be true because you do not own the underlying when you own an ETF. Meaning you can not leverage BTC for yield.
This was just profit-taking. There is a month-long pattern up and then sideways down before up again. Looking at Eth that is.