GBTC Outflows Top $358M but One Theory Suggests It’s Almost Over
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Crypto asset manager Grayscale’s Bitcoin (BTC) exchange-traded fund (ETF) has notched another day of high outflows as nearly $359 million exited the fund on March 21, but analysts think the Grayscale-led exodus could soon be coming to an end.
The Grayscale Bitcoin Trust’s (GBTC) March 21 net outflows of $358.8 million follows a massive week of outflows, with its $642 million on March 18being the largest day on record, per Farside Investors data.,
GBTC outflows have thinned out since Monday. Source: Farside Investors
The latest figures bring this week’s total outflows for GBTC to $1.8 billion and marks the fourth consecutive day of net outflows across all 10 Bitcoin ETFs.
Senior Bloomberg ETF analyst Eric Balchunas speculated in a March 21 X post that much of Grayscale’s outflows could soon drawi to a close, with the majority of them coming from bankruptcies of crypto firms due to their “size and consistency.”
“Any Gemini/Genisis outflows likely buying BTC [with] cash hence market holding up,” said Balchunas.
Related: Spot Bitcoin ETFs suffer third straight day of net outflows, $261M bled
“Takeaway: the worst is [probably] close to being over. Once it is, only retail will be left and flows should look more like the Feb trickle,” he added.
Source: Eric Balchunas
As of March 21, Grayscale reported that its Boffered similar sentiment, pointing to a March 19 statement from Genesis which said the firm would be returning assets to creditors "in kind" — meaning that the defunct lender would be selling GBTC shares for Bitcoin.
On Feb. 14, Genesis received approval from a United States court to begin liqudiating its $1.3 billion worth of GBTC shares in a bid to repay its creditors.
Nearly a month prior, bankrupt cryptocurrency exchange FTX sold 22 million GBTC shares, valued at nearly $1 billion, completely liquidating all of its holdings.
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