Grayscale's GBTC recorded $17.5 million worth of outflows on Apr. 10. As noted by Teddy Fusaro, president at Bitwise Invest, this marks a record low for the ETF.
The cryptocurrency market has been plagued by disastrous Grayscale outflows.
Last month, ETF analyst Eric Balchunas speculated that the outflows were unlikely to be driven by retail investors due to their size and consistency.
As reported by U.Today, Grayscale's GBTC logged a staggering $303 million worth of outflows on Monday. This was followed by nearly $155 million worth of outflows on Tuesday.
Yuri MolchanEven though GBTC just had another day in the red, the record-low outflows might give the bulls some hope that the worst is already over.
Grayscale CEO Mike Sonnenshein recently addressed the ETF's disastrous outflows, arguing that the firm's flagship fund was close to reaching "an equilibrium." Sonnenshein told Reuters that the massive outflows were mostly due to bankruptcy selling and switch trade strategies employed by some market participants.
Sonnenshein has also stressed that GBTC's fees would be lowered in the future. The fund's current management fee of 1.5% is much higher compared to other ETFs offered by such players as BlackRock and Fidelity. Bitwise, for instance, lowered its fees to just 0.2% in order to remain competitive.
Grayscale's GBTC had been functioning as a trust for many years before finally being converted into an ETF this January.
The firm is also vying to launch a spot Ethereum ETF, but the odds of the SEC approving such a product remain low for now.
Tomiwabold Olajide
Yuri Molchan
Vladislav Sopov
Dan Burgin