{"id":10243,"date":"2024-01-30T13:00:52","date_gmt":"2024-01-30T11:00:52","guid":{"rendered":"https:\/\/forklog.com\/en\/gbtc-outflows-slow-as-google-permits-etf-advertising\/"},"modified":"2024-01-30T13:00:52","modified_gmt":"2024-01-30T11:00:52","slug":"gbtc-outflows-slow-as-google-permits-etf-advertising","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/gbtc-outflows-slow-as-google-permits-etf-advertising\/","title":{"rendered":"GBTC Outflows Slow as Google Permits ETF Advertising"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>GBTC investors continue to take profits, but at reduced volumes.\u00a0<\/li>\n<li>Other issuers are lowering management fees.<\/li>\n<li>Google has started allowing bitcoin ETF advertisements.<\/li>\n<\/ul>\n<\/div>\n<p>Outflows from the Grayscale Bitcoin Trust ETF (GBTC) have reached $5 billion since its conversion, potentially prompting withdrawals from crypto funds in Europe and Canada, according to a report by <a href=\"https:\/\/a.storyblok.com\/f\/155294\/x\/1dd9ce5803\/coinshares-digital-asset-fund-flows-29-01-2024.pdf\">CoinShares<\/a>.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/NvT4-XVEcWhs4wPSO8MVuIpsV3MieT_IDiLV4EJcS1mQVnP6V54mvQ30Y-ATxJqeOzmVhMbNuM3iTn6R4SiAmolnFuNtWYDbrUpT1zHh1WVkcibQX9zqqyJiPT6ibamllf9XDJbwDaXu2mbi2qDaxvs\" alt=\"\u041e\u0442\u0442\u043e\u043a \u0438\u0437 GBTC \u0443\u043c\u0435\u043d\u044c\u0448\u0438\u043b\u0441\u044f, \u0430 Google \u0440\u0430\u0437\u0440\u0435\u0448\u0438\u043b\u0430 \u0440\u0435\u043a\u043b\u0430\u043c\u0443 ETF\"\/><figcaption class=\"wp-element-caption\">ETF flow dynamics in various countries. Data: CoinShares.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe recent price decline, driven by significant outflows from the leading ETF issuer in the US \u2014 Grayscale \u2014 totaling $5 billion, likely triggered further outflows from other regions,\u201d analysts explained.\u00a0<\/p>\n<\/blockquote>\n<p>The study indicates that exchange-traded funds in Switzerland and Germany were the hardest hit, with outflows of $59.8 million and $31.7 million respectively from January 22 to 26.<\/p>\n<p>The largest monthly decline in assets under management (AUM) was recorded in Canada ($209.8 million), Germany ($124.5 million), and Sweden ($34.2 million).<\/p>\n<p>Brazil was the only country with positive dynamics for cryptocurrency ETFs, with $10.2 million over the past week.\u00a0<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/GZUHtRjDOxy9jUUmwfRqPbk_QAsd44M8Lp8EHJE7dORfx3Tc4TJXjAfyAEoB5HlXy_ph0Hycb8GOdgf2Kb6IO7_61I-AiKpVM-AD-mSHs7MN89mUKVJJyPeoijXvj1hvqn50Mh1DgKAvBTTiaNxW2Ko\" alt=\"\u041e\u0442\u0442\u043e\u043a \u0438\u0437 GBTC \u0443\u043c\u0435\u043d\u044c\u0448\u0438\u043b\u0441\u044f, \u0430 Google \u0440\u0430\u0437\u0440\u0435\u0448\u0438\u043b\u0430 \u0440\u0435\u043a\u043b\u0430\u043c\u0443 ETF\"\/><figcaption class=\"wp-element-caption\">Bitcoin ETF flow dynamics in the US by issuer. Data: CoinShares.<\/figcaption><\/figure>\n<p>During the second week of trading, nine bitcoin ETF issuers attracted a total of $1.8 billion, yet this amount did not offset the $2.2 billion outflow from GBTC.<\/p>\n<p>CoinShares noted that the negative trend is gradually subsiding.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Redistribution and Fee Wars<\/strong><\/h2>\n<p>Preliminary data from <a href=\"https:\/\/farside.co.uk\/?p=997\">Farside Investors<\/a> shows that on January 29, Fidelity&#8217;s FBTC recorded an inflow of $208 million compared to a $192 million outflow from GBTC. This marks the lowest level for Grayscale since the trust&#8217;s conversion to an exchange-traded fund.\u00a0<\/p>\n<p>On January 24, GBTC experienced a record outflow of $429.3 million. JPMorgan suggested that investors&#8217; profit-taking is nearly complete, which has limited the downward trend in bitcoin.<\/p>\n<p>Currently, nine bitcoin ETFs in the US have reached a combined volume of $994.1 million, nearly double GBTC&#8217;s $570 million.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">And <a href=\"https:\/\/twitter.com\/Grayscale?ref_src=twsrc%5Etfw\">@Grayscale<\/a>&#8216;s <a href=\"https:\/\/twitter.com\/search?q=%24GBTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GBTC<\/a> maintains its liquidity crown \u2014 trading $570 million and ~$110 million more than second place <a href=\"https:\/\/twitter.com\/search?q=%24IBIT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$IBIT<\/a> today <a href=\"https:\/\/t.co\/WIAWKwDnqY\">https:\/\/t.co\/WIAWKwDnqY<\/a> <a href=\"https:\/\/t.co\/ma0CE5szLa\">pic.twitter.com\/ma0CE5szLa<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1752081949470986329?ref_src=twsrc%5Etfw\">January 29, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>BlackRock&#8217;s IBIT and Fidelity&#8217;s FBTC attracted the largest funds after Grayscale \u2014 $460.9 million and $315.4 million respectively, accounting for about 78% of the share of nine exchange-traded funds.\u00a0<\/p>\n<p>Simultaneously, issuers continue to reduce fund management fees. Invesco and Galaxy <a href=\"https:\/\/www.prnewswire.com\/news-releases\/invesco-and-galaxy-drop-the-sponsor-fee-on-invesco-galaxy-bitcoin-etf-btco-302047120.html\">reduced<\/a> fees on their joint BTCO from 0.39% to 0.25%.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">This is what the fee table looks like now: <a href=\"https:\/\/t.co\/LPvd6YwGWJ\">pic.twitter.com\/LPvd6YwGWJ<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1752087109484097631?ref_src=twsrc%5Etfw\">January 29, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Currently, eight bitcoin ETFs have a 0% fee, which they plan to increase after several months or upon reaching a certain volume of assets under management. In the future, these products will have fees ranging from 0.19% to 0.25%.\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Raising Awareness<\/strong><\/h2>\n<p>On January 29, Google updated its policy regarding cryptocurrency promotion. According to <a href=\"https:\/\/support.google.com\/adspolicy\/answer\/14293829?hl=en&#038;ref_topic=29265&#038;sjid=5947559408645700767-EU\">new guidelines<\/a>, financial products that allow investors to \u201ctrade shares of trusts with large pools of digital currency\u201d in the US are deemed suitable for advertising.<\/p>\n<p>Sponsor blocks of products from ETF issuers have already appeared in the corporation&#8217;s search engine.\u00a0<\/p>\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/fLhKPv_Oh-aw4phO-Ux89Dv_OnlKa5J7nDsaLd2YbFRSWcgoSGMeJI4QVz5Z3CcNe1LQMtLKj7V2y8HKj6d-XpEmIJIuR3dWF9TroHdIgP6VYLduOec9QmlbqGGoUcC_v-XjCvSjilE87oGxCdPXAiU\" alt=\"\u041e\u0442\u0442\u043e\u043a \u0438\u0437 GBTC \u0443\u043c\u0435\u043d\u044c\u0448\u0438\u043b\u0441\u044f, \u0430 Google \u0440\u0430\u0437\u0440\u0435\u0448\u0438\u043b\u0430 \u0440\u0435\u043a\u043b\u0430\u043c\u0443 ETF\" style=\"width:351px;height:auto\"\/><figcaption class=\"wp-element-caption\">Bitcoin ETF advertising on Google. Data: Google.\u00a0<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe want users to have sufficient information to make informed financial decisions. Our policy is designed to provide data that allows weighing the costs associated with investment products and services, as well as to protect against harmful or fraudulent actions,\u201d <a href=\"https:\/\/transparency.google\/our-policies\/product-terms\/google-ads\/\">emphasized<\/a> Google.<\/p>\n<\/blockquote>\n<p>To place cryptocurrency product advertisements, clients must have the appropriate license and comply with the platform&#8217;s disclosure rules.<\/p>\n<p>Previously, Grayscale CEO Michael Sonnenshein <a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-ceo-predicts-failure-for-most-bitcoin-etfs\">stated<\/a> that most bitcoin-based exchange-traded funds are likely to fail.\u00a0<\/p>\n<p>Earlier, Galaxy Digital CEO Mike Novogratz downplayed the impact of GBTC sales on the prospects of digital gold.<\/p>\n<p>Previously, several experts <a href=\"https:\/\/u1f987.com\/en\/news\/experts-discuss-the-adverse-impact-of-etfs-on-bitcoins-price\">noted<\/a> the price dependency on the wave of position liquidations in Grayscale&#8217;s exchange-traded fund.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GBTC investors continue to take profits, but at reduced volumes.\u00a0 Other issuers are lowering management fees. Google has started allowing bitcoin ETF advertisements. Outflows from the Grayscale Bitcoin Trust ETF (GBTC) have reached $5 billion since its conversion, potentially prompting withdrawals from crypto funds in Europe and Canada, according to a report by CoinShares. ETF [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,738,1150,1211],"class_list":["post-10243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-google","tag-news-plus","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=10243"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/10242"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=10243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=10243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=10243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}