Crypto Asset Manager Grayscale Sees Slowdown in Bitcoin ETF Outflows
Crypto asset manager Grayscale is experiencing a decrease in outflows from its Bitcoin spot exchange-traded fund (ETF). The total outflow of funds from Grayscale’s GBTC, since its conversion to a spot Bitcoin ETF, has reached $7 billion. However, the pace of asset outflows has significantly slowed down, suggesting that the “bleeding” may be nearing an end.
Slower Outflows in February
- In January, $5.64 billion left GBTC, but in February, only $1.37 billion in outflows were recorded.
Potential Future Outflows
- A judge recently signed an order allowing bankrupt crypto lender Genesis to sell off some of its investment from Grayscale. Genesis owned approximately $1.6 billion shares in GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
Rise of Spot Bitcoin ETFs
- Since their launch on January 11, the assets of nine leading spot Bitcoin ETFs have exceeded 200,000 BTC or $9.5 billion.
- New Bitcoin ETFs have become more popular than silver ETFs and now rank second in the US commodity exchange-traded funds by asset volume.
- The nine Bitcoin ETFs include BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW).
Hot Take: Bitcoin ETF Outflows May Be Slowing Down
The outflows from Grayscale’s Bitcoin spot ETF have shown signs of slowing down, indicating a potential end to the downward trend. While January experienced the largest share of outflows, February saw a significant decrease. Additionally, the possibility of further outflows exists as Genesis, a bankrupt crypto lender, has been granted permission to sell off its investment in Grayscale. On the other hand, the rise of spot Bitcoin ETFs has been remarkable, with nine leading ETFs accumulating over 200,000 BTC within their first month. This surge in popularity has propelled Bitcoin ETFs to become more favored than silver ETFs.
By
By
By
By
By