Key Points
Grayscale, a crypto asset manager, is witnessing a drop in outflows from its Bitcoin (BTC) spot exchange-traded fund (ETF).
Grayscale’s Bitcoin ETF Outflows
Nate Geraci, co-founder of ETF Institute, stated on Feb. 19 that Grayscale’s GBTC has seen a total of $7 billion outflows since converting to a spot Bitcoin ETF.
However, the rate of asset outflows has significantly decreased.
Geraci suggests that the outflows may soon stop.
In January, the largest share of outflows was recorded with $5.64 billion leaving GBTC by month-end.
However, February saw a reduction with only $1.37 billion in outflows.
There is a possibility of further outflows.
A judge recently approved an order allowing Genesis, a bankrupt crypto lender, to sell some of its Grayscale investment.
Court documents reveal that Genesis held about $1.6 billion shares in GBTC, Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
In the first month since their launch on Jan. 11, the assets of nine leading spot Bitcoin ETFs surpassed 200,000 BTC, or $9.5 billion.
These new Bitcoin ETFs climbed to second place in the ranking of commodity exchange-traded funds in the United States by asset volume.
They have become a more popular investment vehicle than silver ETFs.
The nine Bitcoin ETFs are BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW).
