- After 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.
According to a report by Reuters published on Wednesday, Michael Sonnenshein, CEO of Grayscale Investment Management, which manages a Bitcoin ETF, anticipates that the outflows from the fund may soon reach a balance.
According to a report, Sonnenshein expressed that a significant portion of the crypto company bankruptcy sell-offs, including FTX, may have already occurred, based on his remarks during a recent Reuters podcast interview.
In early January, the SEC gave its green light for trading spot bitcoin ETFs. As a result, many investors who held Grayscale’s product (GBTC) – which had been available as a trust for several years prior – may have chosen to sell their shares and move their funds into one of the newly approved ETFs.
An alternative explanation for the large outflows from GBTC is that its fees were significantly higher than those of its rivals, providing a more attractive option for investors looking to switch funds. Sonnenshein predicted last month that GBTC’s fees would eventually go down.
Over the past three months, GBTC experienced a total withdrawal of approximately $15 billion as reported by BitMEX Research. The daily outflows peaked at $600 million in March but have noticeably decreased since then. Specifically, the figures for Monday and Tuesday of this week were $303 million and $155 million respectively.
Grayscale did not immediately respond to CoinDesk’s request for further comment.
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2024-04-10 13:39