Bitcoin spot ETF experienced a net outflow of $94 million on the 21st, marking the fourth consecutive trading day of net outflows. The main reason for the net outflow of spot ETF is the daily net outflow of $358 million from Grayscale. However, Bloomberg ETF analyst Eric Balchunas believes that the selling spree of Grayscale GBTC is expected to come to an end soon.
According to SoSoValue data, Bitcoin spot ETF had a net outflow of $94 million on the 21st, marking the fourth consecutive trading day of negative value, a situation unprecedented since January 25th.
The largest net outflow on the 21st was from Grayscale’s GBTC, with a daily net outflow of $358 million. The previous week, Grayscale experienced large-scale net outflows, with $642 million net outflow on the 18th, setting a new all-time high. The historical net outflow of GBTC has reached $13.63 billion.
However, Bloomberg ETF analyst Eric Balchunas predicts that most of the outflow from Grayscale is likely to end soon. The recent increase in net outflows mostly comes from the liquidation of bankrupt cryptocurrency companies, which can be seen from its “scale and consistency.”
Furthermore, anonymous independent researcher ErgoBTC found that approximately $1.1 billion worth of GBTC funds have flowed out in the past few weeks, seemingly coming from bankrupt cryptocurrency lending institution Genesis. Genesis has transferred over 16,800 BTC to two new addresses in the past few weeks, and these bitcoins may have originated from GBTC outflows.
Genesis, which is in bankruptcy proceedings, sought court approval in early February to sell its approximately $1.6 billion worth of Grayscale Trust assets, including over $1.3 billion worth of GBTC shares. The bankruptcy court has approved Genesis’s request in mid-February, allowing the institution to sell these assets to repay its creditors.
Related report:
Grayscale GBTC selling spree not over yet! Genesis granted court approval to sell over $1.3 billion worth of GBTC.
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