Significant Outflows Continue from Grayscale’s Bitcoin Trust GBTC, Yet Analyst Eric Balchunas Predicts a Near End to the Trend”

Grayscale Bitcoin Trust (GBTC) Records High Outflows, but Analysts Predict Trend’s Conclusion

On March 21, Grayscale’s Bitcoin exchange-traded fund (ETF) experienced significant outflows, with nearly $359 million exiting the fund, marking a continuation of the recent trend. This follows a particularly large week of outflows, with $642 million leaving the trust on March 18, as reported by Farside Investors. The total outflows for GBTC this week amount to $1.8 billion, making it the fourth consecutive day of net outflows across all 10 Bitcoin ETFs.

Eric Balchunas, a senior Bloomberg ETF analyst, suggested that the majority of Grayscale’s outflows could soon taper off, attributing much of the recent movement to the bankruptcies of crypto firms. Balchunas noted that any outflows from firms like Gemini or Genesis are likely being used to purchase Bitcoin, thereby supporting the market.

Also, read- Bitcoin Surges 12% After FOMC Meeting Despite $260 Million ETF Outflows

As of March 21, Grayscale’s Bitcoin Trust holds $23.2 billion in assets under management, having shed $13.6 billion since its conversion to an ETF on Jan. 11. Echoing Balchunas’ sentiments, pseudonymous independent researcher ErgoBTC estimated that around $1.1 billion worth of recent GBTC outflows may be linked to the activities of bankrupt crypto lender Genesis.

Similarly, crypto market commentator WhalePanda pointed to a March 19 statement from Genesis, indicating that the firm would be returning assets to creditors by selling GBTC shares for Bitcoin. Genesis had previously received approval from a United States court to liquidate its $1.3 billion worth of GBTC shares to repay creditors. This follows the complete liquidation of GBTC holdings by bankrupt cryptocurrency exchange FTX, which sold 22 million GBTC shares valued at nearly $1 billion.