Grayscale CEO sees bitcoin ETF outflows reaching equilibrium
Grayscale Bitcoin Trust may be reaching an equilibrium after months of investor selling, Michael Sonnenshein, CEO of crypto asset manager Grayscale Investments, told Reuters on the latest episode of Inside ETFs.
Grayscale has battled to retain dominance of the bitcoin exchange-traded fund (ETF) market since rival offerings from nine other issuers emerged in January, after the U.S. Securities and Exchange Commission (SEC) approved the launch of the products after a decade-long tussle with the crypto industry.
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Offering CollegeCourseWebsiteMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitTotal outflows from Grayscale Bitcoin Trust (GBTC) in the last three months topped $15 billion, according to data from BitMEX Research, although the surge in bitcoin's value has helped ensure that Grayscale's assets under management have dipped only slightly to $23.13 billion.
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«We do believe that the fund has started to reach a little bit of an equilibrium where some of those anticipated outflows, whether it was some of the bankruptcy selling, some investors perhaps undertaking switch trades, (are) largely behind us,» Sonnenshein said.
Some of those outflows were the result of selling connected to the bankruptcy settlements of FTX and other defunct crypto companies, Sonnenshein told Reuters, as well as investors
