Grayscale Appeals to SEC for Approval of Options Amidst Significant Outflows
Grayscale Investments is urging the U.S. Securities and Exchange Commission (SEC) to grant approval for options, citing unfair treatment compared to Bitcoin exchange-traded funds (ETFs). The Grayscale Bitcoin Trust (GBTC) faced a staggering loss of $600 million on February 29, accumulating a total loss of $8.4 billion since January 11, while other Bitcoin ETFs experienced substantial inflows.
Bitcoin reached its highest level in two years, witnessing a 19% surge in the past week, showcasing its flexibility and grabbing investors’ attention. Grayscale’s Bitcoin Trust (GBTC), a leading digital asset management company, witnessed another day of substantial outflows, with over $600 million leaving GBTC on February 29. This contributes to a total outflow of approximately $8.4 billion since the fund’s inception on January 11.
Outflows from Grayscale Bitcoin Trust
According to data from Farside Investors, Grayscale experienced a significant outflow of $600 million from GBTC on February 29 alone. This substantial outflow underscores the growing trend of investors withdrawing their investments from the trust.
Despite the recent surge in Bitcoin prices, Grayscale’s primary investment fund has consistently witnessed external outflows, raising questions about investor sentiments towards the fund. Conversely, several other Bitcoin ETFs recorded substantial inflows on the same day, indicating diverse investor preferences in the digital asset space. Eight ETFs collectively added 14,934 bitcoins, valued at $940 million.
Noteworthy additions include iShares Bitcoin Trust (IBIT) by BlackRock, the world’s largest asset management company, adding 10,140 bitcoins worth $638 million, followed by FBTC by Fidelity, adding 4,066 bitcoins valued at $255.9 million.
Grayscale’s Call to SEC for Options Approval
Grayscale Investments has implored the U.S. SEC to approve options for its BTC ETF fund, emphasizing the need to provide access to a broad range of investors. Michael Sonnenshein, CEO of Grayscale, expressed concerns about potential discrimination if the SEC rejects options in GBTC. Sonnenshein highlighted that the SEC has previously approved options for Bitcoin futures, shedding light on regulatory inconsistencies.
GBTC Trading vs. Standard BTC ETFs
Bitcoin ETFs witnessed a significant increase in trading volume on Wednesday, totaling an astonishing $7.69 billion, surpassing previous volume records by more than one and a half times. This surge in trading activity reflects the growing interest and participation in Bitcoin ETFs as investors seek exposure to the leading cryptocurrency through regulated investment vehicles.
Read more Mining Stocks Experience Decline Amid Bitcoin Volatility
Bitcoin continues its upward trajectory, reaching its highest level in two years earlier this week. According to CoinMarketCap data, Bitcoin surged by over 19% in the past seven days, with a market capitalization of $1.2 trillion. This impressive performance reaffirms Bitcoin as one of the most valuable assets globally, attracting attention from both institutional and individual investors alike.
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