GrayScale CEO: Outflow of funds for GrayScale Bitcoin Spot ETF is reaching equilibrium

Michael Sonnenshein, CEO of Grayscale Investments, stated in an interview with Reuters’ “Inside ETFs” program that after months of investor selling, the outflows from Grayscale’s Bitcoin Trust Fund (GBTC) may be reaching a balance.

Sonnenshein explained that some of the outflows were due to sell-offs related to the bankruptcy liquidation of FTX and other defunct cryptocurrency companies, as well as investors selling Grayscale ETF and immediately buying another ETF.

Many cryptocurrency companies that filed for bankruptcy in 2022 and 2023 held shares of Grayscale’s trust fund on their balance sheets and sought to sell these stocks to repay creditors once the investment product was converted into a spot ETF. This aspect has not yet fully reflected in the fund flow data.

Data from BitMEX Research shows that over the past three months, the net outflows of GBTC totaled as much as $15 billion, despite the surge in Bitcoin’s value, which helped Grayscale’s assets under management only slightly decline to $23.13 billion.

Although the recent daily net outflows of GBTC are much lower than the $600 million seen in March, it is still in a continuous outflow state. On Monday and Tuesday of this week, GBTC experienced net outflows of $303 million and $155 million respectively.


GBTC Daily Fund Flow Situation (Source: Farside Investors)

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