Outflows from Grayscale’s GBTC Reach $358M

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Grayscale’s Bitcoin exchange-traded fund (ETF) has experienced significant outflows over the past few days, with nearly $359 million leaving the fund on March 21.

However, analysts believe that this trend may soon come to an end.

The March 21 outflows of $358.8 million add to the record-breaking outflows seen over the past week, with $642 million leaving on March 18 alone according to Farside Investors data. In total, this week has seen a total of $1.8 billion outflows from GBTC, making it the fourth consecutive day of outflows for all 10 Bitcoin ETFs.

Eric Balchunas, a senior ETF analyst at Bloomberg, predicts that Grayscale’s outflows could soon stabilize as they may be caused by bankruptcies of larger crypto companies that regularly invested in GBTC.

Balchunas also suggests that any source of outflows, such as those from Gemini or Genesis, may be buying Bitcoin with cash, which could help stabilize the market.

Overall, Balchunas believes that the worst of the outflows may be coming to an end and that once the trend reverses, the remaining inflows from retail investors will look more similar to those seen in February.