Grayscale’s flagship Bitcoin fund had no competition from the newly launched ETF products in their first seven days, figures show.
Bitcoin (BTC) investment vehicle the Grayscale Bitcoin Trust (GBTC) outperformed the newly launched exchange-traded funds (ETF) last week, data shows.
Figures shared by Grayscale executives among others confirm that GBTC has quietly delivered better investor returns since Oct. 19.
Grayscale “discount” hits one-month lows
While talk continues to revolve around Bitcoin futures ETFs and their market impact, industry stalwart Grayscale is biting back.
Amid claims that the newly launched funds are sucking custom away from GBTC, the firm’s chiefs were quick to note that the latter has in fact been a better bet since launch day.
Over the seven days to Monday, GBTC returned around 8.8%, while the pioneering Bitcoin futures ETF, ProShares Bitcoin Strategy ETF (BITO), fell 0.5%.
This was thanks in part to the GBTC premium heading higher, reaching its lowest discount to spot price since early September this week.
Concerns previously centered on Grayscale’s potential inability to rescue the negative premium as more ETFs launched, this in turn countered by those who argued that the two instruments’ value proposition cannot be compared.
Barry Silbert, CEO of Grayscale parent company Digital Currency Group, further highlighted GBTC’s higher trading volumes. For Monday, Oct. 25, these totaled $374 million, while BITO managed $286 million.
As TechynoWorld reported, Grayscale CEO Michael Sonnenshein recently repeated his pledge to convert GBTC itself into an ETF, formally applying to do so with United States regulators.
Ether futures ETF next?
Meanwhile, Tuesday sees the launch of the third United States Bitcoin ETF, this time from VanEck.
Long locked in a battle with the U.S. Securities and Exchange Commission over bringing such a product to market, the release marks a line in the sand for longtime market participants.
The fate of physical Bitcoin ETFs — those with BTC actually delivered — still hangs in the balance ahead of an SEC decision on the first applications next month.
“If regulators cared enough about the best interest of investors, they would approve a physical Bitcoin ETF soon,” VanEck digital assets strategy director Gabor Gurbacs argued last week.
“14 countries in Europe, Canada, Brazil and other nations have access to physicals Bitcoin ETPs. Physical > Futures.”
Popular trader and analyst Scott Melker countered that an Ether (ETH) futures ETF will precede the physical Bitcoin go-ahead.