According to Michael Sonnenshein, CEO of digital asset investment management Grayscale, withdrawals from the company’s exchange-traded fund (ETF) for bitcoin (BTC) are expected to level out, as reported by Reuters on Wednesday.
According to a story citing a Reuters podcast, Sonnenshein stated that part of the selling related to settlements of failed cryptocurrency startups like FTX is “largely behind us.”
Following the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January, investors in Grayscale’s product (GBTC), which had been a trust for a number of years, presumably sold their shares to fund one of the new funds, resulting in large withdrawals. The fact that GBTC’s fees were significantly higher than those of its rivals was another factor in the withdrawals. Sonnenshein stated last month that he anticipates a gradual drop in the fund’s fees.
According to BitMEX Research, GBTC has seen outflows of $15 billion in the last three months. These were reaching $600 million a day in March, but they have subsequently dropped dramatically. They were $303 million on Monday and $155 million on Tuesday of this week.