Despite massive GBTC Outflows in Q1 2024, Grayscale (GBTC) Maintained Stable Revenue

Grayscale Investments posted solid revenue in Q1 despite massive outflows from the Grayscale Bitcoin Trust (GBTC), its converted spot Bitcoin exchange-traded fund (ETF).

According to a letter to shareholders from parent company Digital Currency Group (DCG), the company reported revenue of $156 million, little changed QoQ. Highly reminiscent, the Grayscale Bitcoin Trust successfully converted its flagship entity into an ETF in January this year, leading to a massive outflow of assets totaling more than $17.5 billion to date. The shift has been attributed to investors repositioning their assets away from rivals such as BlackRock and Fidelity into lower-cost funds. The U.S. spot Bitcoin ETF market saw overall inflows of nearly $12 billion, although demand weakened due to tighter financial (inflation, Fed) and regulatory (SEC, CFTC) conditions in the country.