Bitcoin News, Crypto News
Grayscale Loses $20 Billion in Bitcoin and Ether ETFs
Jul
Grayscale Experiences $20 Billion Decline in Bitcoin and Ether ETFs
Grayscale Investments has faced substantial outflows from its Bitcoin and Ether exchange-traded funds (ETFs), while other approved ETFs continue to see positive investment flows.
Recent reports indicate that Grayscale has recorded over $20.4 billion in outflows from its Bitcoin and Ether ETFs combined. The specific figures include:
- The Grayscale Bitcoin Trust ETF (GBTC) has lost an average of approximately $137.7 million daily since its launch on January 11, totaling $18.86 billion in outflows by July 29.
- In contrast, other nine Bitcoin ETFs approved in the U.S. during the same timeframe have maintained positive balances.
Among the various Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) leads with the highest investment totaling $19.93 billion. Other significant holders include:
- Fidelity Wise Origin Bitcoin Fund (FBTC) – $9.9 billion
- Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB) – $2.6 billion
- Bitwise Bitcoin ETF (BITB) – $2.09 billion
The performance of the newly launched Grayscale Ethereum Trust (ETHE) has mirrored that of GBTC, reflecting similar trends in capital outflows. Specifically, the Ether fund experienced a $1.72 billion decline over five days.
Overall, Grayscale’s total crypto ETF outflows reached $20.58 billion, representing an 18.7% reduction of its initial funds of nearly $9.2 billion.
According to Mads Eberhardt, a senior analyst at Steno Research, large outflows from Grayscale’s ETHE are expected to taper off by August 2. He suggests that the strong early outflows may indicate bullish trends in the short term.
“The Grayscale Bitcoin ETF outflow occurred significantly following the eleventh trading session,” he remarked.
“With the Grayscale Ethereum ETF experiencing much higher outflows relative to its assets under management, we anticipate that peak outflow will happen sometime this week.”
Trader Evanss6 shared a similar perspective, noting the comparative analysis of the launches of spot BTC and ETH ETFs. He observed that the outflows from Bitcoin ETFs bottomed out on the seventh trading day, correlating with significant price movements shortly afterward, speculating a potential rise in value.
