Grayscale Investments’ CEO, Michael Sonnenshein, said in an interview with Reuters Inside ETFs that after months of investor selling, outflows from the Grayscale Bitcoin Trust (GBTC) may be reaching a balance.
Sonnenshein stated that some of the outflows were due to selling related to bankruptcies and liquidations of crypto companies such as FTX and others, as well as investors selling the Grayscale ETF and immediately buying into another ETF.
Many crypto companies that filed for bankruptcy in 2022 and 2023 held shares of the Grayscale Trust on their balance sheets and sought to sell these stocks to repay creditors after the investment product was converted into a spot ETF. This has not fully reflected in the fund flow data yet.
Data from BitMEX Research shows that over the past three months, net outflows from GBTC totaled as high as $15 billion, despite the surge in Bitcoin’s value helping Grayscale’s assets under management only slightly decline to $23.13 billion.
Although the recent daily net outflows from GBTC are much lower than the around $600 million seen in March, it remains in a continued outflow state. This week, on Monday and Tuesday, GBTC saw net outflows of $303 million and $155 million, respectively.
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Daily fund flow situation of GBTC (Source: Farside Investors)
