Grayscale Bitcoin Trust (GBTC) had net outflows of $358.8 million on March 21 after a massive week of outflows, with $642 million on March 18 being the largest day on record, according to Farside Investors.
GBTC outflows have decreased since Monday. Source: Farside Investors
According to the latest data, total outflows from GBTC this week reached $1.8 billion, marking the fourth consecutive day of net outflows from all 10 Bitcoin ETFs.
Bloomberg ETF senior analyst Eric Balchunas suggested in a March 21 X post that most of Grayscale's outflows could soon end, with most of them driven by crypto firm bankruptcies due to their "size and persistence."
āAny Gemini/Genisis outflows are likely buying BTC [with] cash, hence the market is delayed,ā Balchunas said.
Related: Spot Bitcoin ETFs suffer third day in a row of net outflows, $261 million lost
āBottom line: the worst is [probably] close to over. Once this happens, only retail will remain and flows will be more like a trickle in February,ā he added.
Source: Eric Balchunas
As of March 21, Grayscale reported that its Bitcoin Trust had assets under management totaling $23.2 billion. In total, GBTC has lost $13.6 billion since converting to an ETF on January 11.
According to Balchunas, an independent researcher under the pseudonym ErgoBTC has suggested that about $1.1 billion in GBTC outflows over the past few weeks appears to have originated from failed crypto lender Genesis.
ErgoBTS
āThe volume of activity and timing of withdrawals from GBTC and Genesis are pretty well aligned,ā Ergo said. āThere just arenāt that many 2k BTC transactions per day, so itās likely that the outflow of GBTC and the inflow of Genesis are related.ā
Crypto market commentator Keith Panda made a similar point, pointing to a March 19 statement from Genesis that said the firm would return assets to lenders "in kind"āmeaning a non-existent lender would sell GBTC shares for bitcoin.
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