Grayscale's Bitcoin (BTC) exchange-traded fund (ETF) witnessed a significant decline in outflows on Wednesday, with a record low of around $18 million, marking a notable departure from its usual outflow amounts since its launch in January.
Grayscale Bitcoin ETF Posts Lowest Daily Outflow of $18 Million Amid Fading Selling Pressure
This latest development comes just a day after Grayscale CEO Michael Sonnenshein stated that he expects outflows from the Grayscale Bitcoin Trust (GBTC) to reach a state of “balance.”
Sonnenshein suggested that sales activity associated with deals from bankrupt crypto companies like FTX has greatly diminished.
Analysts at Coinbase Institutional suggested that the recent surge in GBTC sales may be due in part to Genesis selling shares as part of its bankruptcy proceedings.
The GBTC product has experienced significant bitcoin outflows totaling approximately $15 billion since its inception, contributing to continued selling pressure on the asset.
Notably, the Grayscale Bitcoin ETF charges the highest annual fees among its peers, charging 1.5% of assets, compared to a low of 0.19% for Franklin Templeton's EZBC.
*This is not investment advice.