Grayscale’s spot BTC and ETH ETFs face significant outflows, while other approved ETF participants maintain a positive balance.
Asset management firm Grayscale Investments has recorded over $20.4 billion in outflows from its spot Bitcoin and Ether exchange-traded funds (ETFs) combined.
The Grayscale Bitcoin Trust ETF (GBTC) has lost an average of approximately $137.7 million daily in almost seven months since its launch on Jan. 11. As of July 29, GBTC recorded total outflows of $18.86 billion.
In contrast, all other nine spot Bitcoin ETFs simultaneously approved in the United States maintain a positive balance, as shown below.
Out of the lot, BlackRock’s iShares Bitcoin Trust (IBIT) tops the leaderboard with the highest investment, currently holding $19.93 billion in BTC. Other prominent holders include Fidelity’s Wise Origin Bitcoin Fund (FBTC), which holds $9.9 billion; Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB), which holds $2.6 billion; and the Bitwise Bitcoin ETF (BITB), which holds $2.09 billion.
Check out Cointelegraph’s guide to learn more about how cryptocurrency ETFs work.
The newly launched Grayscale Ethereum Trust (ETHE) showcased a performance comparable to GBTC in terms of investment outflows.
The Ether fund lost $1.72 billion in five days, bringing Grayscale’s total crypto ETF outflows to $20.58 billion. In the process, Grayscale shed 18.7% of its initial seed funds of nearly $9.2 billion.
On July 30, Steno Research senior analyst Mads Eberhardt claimed that massive outflows from the Grayscale’s ETHE should subside by Aug. 2. However, Eberhardt sees the strong early outflows as a reason for bullishness in the short term.
“The Grayscale Bitcoin ETF outflow subsided significantly following the eleventh trading session,” he said.
“Since the Grayscale Ethereum ETF has experienced a much higher outflow relative to AUM [assets under management], we believe that peak outflow will occur sometime this week.”
Pseudonymous trader Evanss6 echoed Eberhardt’s view by comparing the launch of spot BTC and ETH ETFs side-by-side.
According to Evan, the outflows from Bitcoin ETFs bottomed on the seventh trading day, and the bottom occurred when cumulative GBTC outflows reached 13.2% of the original fund, adding that Bitcoin proceeded to “rip [approximately] 92% in 50 days” following the bottoming of GBTC outflows.
Source: cointelegraph.com
