GBTC will raise more than $358 million, but one theory suggests that it is over
Crypto asset manager Grayscale's Bitcoin (BTC) exchange-traded fund (ETF) saw another day of heavy outflows, with nearly $359 million exiting the fund on March 21, but analysts think the exodus may end soon.
Greyscale Bitcoin Trust's (GBTC) March 21 net inflow followed a peak week of $358.8 million, and March 18's $642 million was the largest day on record, according to Farside Investors data.
The latest figures bring total GBTC spending this week to $1.8 billion and mark the fourth consecutive day of net inflows across all 10 Bitcoin ETFs.
In a March 21, 2009 note, Senior Bloomberg ETF Analyst Eric Balchunas predicted that most of the grayscale outflows could end soon, with most coming from losses from crypto companies due to “volume and consistency.”
“Any Gemini/Genisis that comes out can buy BTC. [with] “The cash market is booming,” Balchunas said.
“Getting carried away is the worst. [probably] Close to finish. Once that happens, all that's left is retail and flows should look like a February trick,” he added.
In the year As of March 21, Grayscale reported that its Bitcoin Trust had a total of $23.2 billion in assets under management. Since converting to an ETF on January 11, GBTC has invested $13.6 billion.
Related: Spot Bitcoin ETFs suffer third straight day of net outflows, bleeding $261M.
In line with Balchunas, a well-known independent researcher ErgoBTC appears to have seen an estimated $1.1 billion flow of GBTC over the past few weeks from bankrupt crypto lender Genesis.
“The volume of activity and cash flow from GBTC and into Genesis are well aligned,” ErgoBTC said. “GBTC withdrawals and Genesis flows may be related because there simply aren't 2k BTC txs per day.”
Anonymous crypto market analyst WhalePanda points to a statement from Genesis on March 19 that said the firm will return its assets to creditors “in kind” — meaning the defaulting creditor will sell GBTC shares for Bitcoin.
In the year On February 14, Genesis received permission from a US court to begin liquidating $1.3 billion worth of GBTC shares to repay its creditors.
About a month ago, the bankrupt cryptocurrency exchange FTX sold 22 million GBTC shares, selling almost $1 billion worth of stock, completely liquidating all of its holdings.
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