Grayscale ETFs Face Unprecedented Outflows

Grayscale Investments has seen over $20.4 billion in outflows from its Bitcoin and Ethereum ETFs.

Since launching on January 11, the Grayscale Bitcoin Trust ETF (GBTC) has faced average daily withdrawals of about $137.7 million, accumulating $18.86 billion in total outflows by July 29.

In contrast, the nine other U.S.-approved spot Bitcoin ETFs are seeing positive inflows. BlackRock’s iShares Bitcoin Trust (IBIT) leads with $19.93 billion in assets, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) at $9.9 billion, ARK 21Shares Bitcoin ETF (ARKB) with $2.6 billion, and Bitwise Bitcoin ETF (BITB) with $2.09 billion.

The newly launched Grayscale Ethereum Trust (ETHE) has also faced significant outflows, losing $1.72 billion in just five days. This has contributed to a total of $20.58 billion in outflows across Grayscale’s crypto ETFs, reducing their initial investments by 18.7%.

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Mads Eberhardt of Steno Research expects the large outflows from ETHE to taper off by August 2. He notes that while initial outflows have been high, they might indicate a positive short-term trend.

Alexander Stefanov