ETF Outflows Are Finally Subsiding
Newly released data from CoinShares shows that Grayscale’s spot bitcoin ETF, GBTC, experienced outflows of over $2.2 billion last week, surpassing the total inflows of its competitors. In contrast, spot bitcoin ETFs in the US saw an inflow of approximately $1.8 billion during the same period. The decline in GBTC’s assets has likely influenced outflows from other regions as well. While global outflows of digital asset products reached over $500 million, with $409 million coming from the US, the report suggests that outflows from GBTC are starting to decrease.
Grayscale’s FTX Connection
Following FTX’s bankruptcy, the crypto exchange sold off 22 million shares of GBTC, worth an estimated $2 billion. This move came after FTX’s sister company, Alameda Research, dropped a lawsuit against Grayscale and its affiliates. The lawsuit accused Grayscale of improperly holding investors’ funds and charging exorbitant fees. John Jay Ray III is currently overseeing FTX’s bankruptcy estate.
“Grayscale Is a Crypto Specialist,” CEO Says
Grayscale CEO Michael Sonnenshein expressed confidence in his company’s spot bitcoin ETF and its ability to withstand competition from newly approved ETFs. He believes that investors value factors such as liquidity, track record, and the issuer behind the product. Sonnenshein stated that Grayscale has paved the way for many of these products and positioned itself as a crypto specialist.
Hot Take: GBTC Outflows Exceed Inflows for Spot Bitcoin ETFs
New data reveals that Grayscale’s GBTC experienced significant outflows last week, surpassing the total inflows of other spot bitcoin ETFs. The decline in GBTC’s assets may have influenced outflows from other regions as well. FTX’s selling off of GBTC shares and the subsequent dropping of a lawsuit against Grayscale further add to the turmoil. However, Grayscale’s CEO remains confident in the company’s position as a crypto specialist. It will be interesting to see how these developments impact the overall market and whether GBTC can regain its standing.
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