Grayscale CEO Says Bitcoin ETF Outflows Are Reaching Equilibrium: Reuters
Michael Sonnenshein said that some of the selling connected to settlements of bankrupt crypto companies like FTX is "largely behind us."
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- After the approval of several spot bitcoin ETFs in January, investors may have sold their GBTC shares to move into new products.
- Daily outflows from GBTC have fallen significantly since hitting $600 million in March.
Michael Sonnenshein, CEO of digital asset investment manager Grayscale, sees outflows from the company's bitcoin (BTC) exchange-traded fund (ETF) reaching an equilibrium, Reuters reported on Wednesday.
Sonnenshein said that some of the selling connected to settlements of bankrupt crypto companies like FTX is "largely behind us," according to the report, citing an appearance on a Reuters podcast.
When the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin ETFs in January, Grayscale's product (GBTC), which had already existed for several years as a trust, experienced significant outflows as existing investors likely sold their shares to buy into one of the new funds.
Another reason for the outflows was GBTC's comfortably higher fees compared to its competitors. Sonnenshein said last month that he expects the fund's fees to decrease over time.
In the three months since, GBTC has seen total outflows worth $15 billion, according to BitMEX Research. In March, these were hitting $600 million a day but have fallen significantly since. On Monday and Tuesday this week, they stood at $303 million and $155 million, respectively.
Grayscale did not immediately respond to CoinDesk's request for further comment.
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Jamie Crawley is a CoinDesk news reporter based in London.