Home Crypto asset firm Grayscale has lost $20 billion in Bitcoin and Ethereum ETFs

Crypto asset firm Grayscale has lost $20 billion in Bitcoin and Ethereum ETFs

tl;dr

  • Grayscale Investments has lost over $20.4 billion in outflows from its Bitcoin and Ethereum ETFs, according to Farside Investors.
  • GBTC has averaged losses of $137.7 million per day over seven months, while other spot Bitcoin ETFs see net positive flows.
  • ETHE has lost $1.72 billion in five days, with outflows expected to peak soon, indicating a potential bullish short-term outlook.

Leading crypto-specific asset manager Grayscale Investments has lost over $20.4 billion through outflows from its Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).

According to data gathered from Farside Investors, the Grayscale Bitcoin Trust ETF (GBTC) has lost $137.7 million per day on average over the seven months since its conversion from a close-ended fund. The other spot Bitcoin ETFs keep mostly seeing net positive capital flows.

BlackRock’s iShares Bitcoin Trust (IBIT) specifically tops the chart when it comes to assets under management, with $19.93 billion in Bitcoin. It is followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with its $9.9 billion, Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB) with $2.6 billion and the Bitwise Bitcoin ETF (BITB) currently holding $2.09 billion.

Farside Investors data also shows that Grayscale’s Ethereum Trust (ETHE) has so far fared similarly. ETHE has lost $1.72 billion in just five days, leading to Grayscale’s derivatives losing $20.58 billion to outflows. The product has lost 18.7% of their initial seed funds of nearly $9.2 billion.

Steno Research senior analyst Mads Eberhardt expects this rate of outflows out of Grayscale’s ETFs to cease by Aug. 2. Furthermore, he sees such outflows as a reason to be bullish in the short-term.

Eberhardt further explained that the outflows from Grayscale’s crypto derivatives have already substantially diminished. He further explained:

Since the Grayscale Ethereum ETF has experienced a much higher outflow relative to AUM, we believe that peak outflow will occur sometime this week.

Pseudonymous trader Evanss6 shared a similar outlook. He compared data from the launch of Bitcoin and Ethereum ETFs. He concluded that “Grayscale selling is finite.”

The report follows recent data showing that on their second day of trading, United States-based spot Ethereum exchange-traded funds (ETFs) recorded net outflows of $113.3 million. This negative trend registered in the overall Ethereum ETF market was largely driven by significant withdrawals from Grayscale’s Ethereum Trust alone.

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Radek Zielinski
Tech Journalist

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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