Grayscale CEO: The capital outflow of GBTC has begun to reach a certain level of balance

PANews reported on April 11, according to Reuters, Michael Sonnenshein, CEO of crypto asset management company Grayscale Investments, said in the latest episode of "Inside ETFs" that after several months of investor sell-offs, the fund outflows from Grayscale Bitcoin Trust (GBTC.P) may be reaching a balance. Sonnenshein stated: "We do believe that the fund has begun to reach a certain level of balance. The expected outflows caused by bankruptcy liquidations or conversions by some investors have basically passed." He mentioned that part of the fund outflow is related to FTX and other bankrupted crypto companies' liquidation and some investors sold off Grayscale ETF just for immediate purchase of other ETFs.

The report states many crypto companies filing for bankruptcy in 2022 and 2023 held shares in Grayscale's trust funds at the time on their balance sheets and planned to sell these shares after converting products into ETFs to repay creditors. This has not yet been fully reflected in cash flow data.

Data from BitMEX Research shows that over the past three months, GBTC's total outflow exceeded $15 billion USD; however, despite Bitcoin's soaring value ensuring only a slight decrease in assets managed by Grayscale down to $23.13 billion USD.