July 20, 2024


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Outflows From GBTC Surpass $358M, but According to One Theory, They’re Almost Done

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Although there have been significant withdrawals from Grayscale’s Bitcoin ETF today, ETF researcher Eric Balchunas thinks they will soon slow down.

The Bitcoin exchange-traded fund (ETF) managed by cryptocurrency asset manager Grayscale saw significant withdrawals again on March 21, with around $359 million leaving the fund. However, analysts believe that this outflow may be nearing its conclusion.

According to Farside Investors statistics, the Grayscale Bitcoin Trust (GBTC) had net outflows of $358.8 million on March 21. This comes after a tremendous week of outflows, with the highest day ever being March 18 with $642 million.

The most recent data indicates that GBTC has had net withdrawals for four days running across all 10 Bitcoin ETFs, bringing the total outflows for this week to $1.8 billion.

In a March 21 X post, senior Bloomberg ETF analyst Eric Balchunas conjectured that a significant portion of Grayscale’s outflows may soon come to an end, with the bulk originating from the bankruptcies of cryptocurrency startups because of their “size and consistency.”

The market has held up because “any Gemini/Genisis outflows likely buying BTC [with] cash,” according to Balchunas.

The bottom line is that things are probably about to get better. When it does, he continued, “only retail will remain, and flows should resemble the February trickle more.”

Grayscale stated on March 21 that the assets under management of its Bitcoin Trust amounted to $23.2 billion. Since Jan. 11, when GBTC was converted to an ETF, it has lost $13.6 billion.

In agreement with Balchunas, anonymous independent researcher ErgoBTC proposed that bankrupt cryptocurrency lender Genesis looks to have been the source of almost $1.1 billion in GBTC outflows throughout the past several weeks.

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