Grayscale’s Crypto ETFs See Significant Asset Decline After Majro Outflows

Grayscale’s cryptocurrency investment products, particularly its Ethereum and Bitcoin ETFs, have seen a notable decline in assets. Recent figures indicate that Grayscale’s total holdings have dipped below $20 billion.

Recent figures indicate that Grayscale’s total holdings have dipped below $20 billion.

This downturn is largely due to continuous outflows from its crypto ETFs. In the past week, the Ethereum Trust (ETHE) and Bitcoin Trust (GBTC) recorded net outflows of $10.7 million and $52.9 million, respectively, as of September 6.

Recent data highlights that the Grayscale Bitcoin Trust (GBTC) witnessed an outflow of $280 million last week, with $52.9 million withdrawn on Friday alone. This significant movement has contributed to a steep drop in the fund’s total assets.

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Overall, Bitcoin ETFs have seen $706 million in outflows over the past week.

Meanwhile, Arkham’s data shows that Grayscale’s overall holdings have now fallen below $20 billion, reflecting a broader decline in interest for Bitcoin ETFs amidst the ongoing crypto market downturn.

The market decline has been especially challenging for GBTC, which, despite its early success, has struggled to retain its asset base.

Similarly, Grayscale’s Ethereum Trust (ETHE) has also experienced outflows, with $10.7 million withdrawn on September 6. This has further pressured Grayscale’s asset management, with ETHE being the only Ethereum ETF to experience outflows that day.

Alexander Stefanov