- GBTC experienced a $17.5 million outflow.
- The figure marks a record low in outflows for the ETF.
- Grayscale Investments’ CEO noted the company’s funds are nearing equilibrium with their outflows.
Data from Soso Value, a research platform for crypto investors, shows that Grayscale’s spot Bitcoin ETF (GBTC) experienced a $17.5 million outflow on Wednesday. The figure marks a record low in outflows for the ETF as the selling pressure on BTC continues to drop.
Comparing the figures, GBTC’s combined net outflow for Monday and Tuesday was over $450 million. As of Wednesday, the cumulative outflow for the past three months has crossed $15 billion, per data from Soso Value.
Commenting on the development, Grayscale Investments CEO Michael Sonneshein noted the company’s funds are nearing equilibrium with its outflows. According to Sonneshein, the current trend follows a period of capital flight triggered by a combination of switch trades and settlements from bankruptcies like FTX.
Still, on the same issue, Benjamin Stani, director of business development at Matrixport, said the GBTC outflows appear to have found a bottom. He attributed this to rumors of exhaustion from forced sellers. Stani agreed with Sonneshein’s opinion that bankruptcy cases in FTX and Digital Currency Group (DCG) contributed to the pressure on GBTC outflows.
Stani did not rule out the possibility of a return in GBTC outflow volatility. According to Stani, the weekly ETF outflow pattern has shown significant volatility since its debut. He highlighted that the ETF has experienced such situations when outflows slowed down before picking up again. Hence, he cautioned users on how to apply the available data points in making decisions.
Despite his reluctance, Stani thinks the current outflow slowdown could be more serious. He believes the market would naturally find equilibrium at some point, especially with the Grayscale CEO suggesting the market is close to that point.
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