Grayscale Bitcoin ETF (GBTC) has seen a significant outflow of funds, with over $30 million leaving the fund in the last 24 hours. This latest exit adds to the growing trend of investors moving their money out of GBTC and into other investment options.

The total outflows from GBTC have now reached 340,000 BTC since the launch of spot Bitcoin ETFs in the United States. This year alone, the fund has sold over 18,000 Bitcoin, but it still maintains its position as the largest holder of Bitcoin, with 29,331 BTC on its balance sheet.

The primary reason for the outflows from GBTC is its relatively high fees compared to newer ETFs like BlackRock's offering. Investors are attracted to the lower costs of these newer products, leading them to shift their funds away from GBTC.

Despite the outflows, the overall cryptocurrency market has seen a slight recovery in the past 24 hours. Bitcoin, Ethereum, and other altcoins have experienced gains, with the total market capitalization increasing by 0.91%.

The recent outflows from GBTC come after a period of heightened exits last week due to the wider market correction. However, with the current positive trend in digital asset prices, the outflows from institutional products like GBTC have moderated.

Grayscale played a crucial role in the launch of spot Bitcoin ETFs in the United States, following a legal battle that eventually led to the approval of these products by the Securities and Exchange Commission (SEC). The SEC had previously cited potential risks related to trade manipulations as a reason for delaying the approval of spot Bitcoin ETFs.

As the cryptocurrency market continues to evolve, investors are increasingly seeking out alternative investment options that offer lower fees and better alignment with their investment strategies. The outflows from GBTC are a testament to the growing competition in the Bitcoin ETF space and the changing preferences of investors.