EddieJayonCrypto

 10 Apr 24

tl;dr

Following the approval of spot bitcoin ETFs in January, investors sold off GBTC shares to move into new products, leading to significant daily outflows from GBTC, which hit $600 million in March but have since fallen. Grayscale's CEO predicts outflows from GBTC to reach an equilibrium, citing connec...

Following the approval of several spot bitcoin ETFs in January, investors may have sold their GBTC shares to move into new products.

Daily outflows from GBTC have fallen significantly since hitting $600 million in March.

Michael Sonnenshein, CEO of digital asset investment manager Grayscale, sees outflows from the company's bitcoin (BTC) exchange-traded fund (ETF) reaching an equilibrium, Reuters reported on Wednesday. Sonnenshein said that some of the selling connected to settlements of bankrupt crypto companies like FTX is "largely behind us," according to the report, citing an appearance on a Reuters podcast.

When the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin ETFs in January, Grayscale's product (GBTC), which had already existed for several years as a trust, experienced significant outflows as existing investors likely sold their shares to buy into one of the new funds.

Another reason for the outflows was GBTC's comfortably higher fees compared to its competitors. Sonnenshein said last month that he expects the fund's fees to decrease over time.

In the three months since, GBTC has seen total outflows worth $15 billion, according to BitMEX Research. In March, these were hitting $600 million a day but have fallen significantly since. On Monday and Tuesday this week, they stood at $303 million and $155 million, respectively.

Grayscale did not immediately respond to CoinDesk's request for further comment.


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Disclaimer

The opinions expressed by the writers at Grow My Bag are their own and do not reflect the official stance of Grow My Bag. The content provided on our site is not intended as investment advice, and Grow My Bag is not an investment advisor. We do not endorse buying or selling any cryptocurrencies or digital assets mentioned in our articles. High-risk investments in Bitcoin, cryptocurrencies, and digital assets require thorough due diligence, and all transfers and trades made are at your own risk. Grow My Bag is not responsible for any potential losses and participates in affiliate marketing.
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