- Following January’s blessing of multiple spot bitcoin ETFs, investors appeared to offload GBTC shares in favor of fresher alternatives.
- The daily exodus from GBTC has dramatically tapered down from a March peak of $600 million.
Michael Sonnenshein, the head honcho at Grayscale — a heavyweight in digital asset investment — told Reuters on Wednesday that outflows from the firm’s bitcoin trust (GBTC) are now finding their footing and approaching a state of balance.
He mentioned during a chat featured on a Reuters podcast that much of the sell-off tied to wind-downs of collapsed crypto outfits such as FTX is “mostly behind us.”
A Shift Set in Motion by Spot Bitcoin ETFs Approval
When the U.S. Securities and Exchange Commission gave the green light to spot bitcoin ETFs early this year, it sent ripples through the market. Grayscale’s GBTC, which had held the scene as a trusted bitcoin investment vehicle for years, saw a notable outflow surge as investors moved their chips from the older trust into newly minted funds.
Fee Structure Playing a Key Role
Another sizable factor nudging investors away from GBTC was the fund’s relatively heftier fees compared to its fresh rivals. Sonnenshein nodded to this last month and projected a gradual slimming down of these charges over time.
Outflow Metrics in Focus
Data from BitMEX Research revealed that since January, the drain from GBTC has totaled some $15 billion. While March witnessed staggering daily withdrawals nearing $600 million, numbers have softened sharply since then — sliding to $303 million on Monday and dwindling further to $155 million by Tuesday of this week.
Quick Stats Snapshot:
| Total GBTC Outflows (Jan–Apr) | $15 billion |
| Peak Daily Outflows (March) | $600 million |
| Recent Daily Outflows (This Week) | $155–303 million |
At time of writing, Grayscale has yet to provide additional commentary to CoinDesk’s inquiries.
