Grayscale CEO: GBTC net outflow has gradually balanced! Expected cost reduction

Grayscale Investments CEO Michael Sonnenshein told Reuters on the Inside ETF program that after months of investor selling, GBTC net outflows may be about to reach balance.

GBTC has a net outflow of nearly US$16 billion

BitMEX Research data shows that GBTC has a total net outflow of US$15.9 billion since its listing in January, although the overall ETF still has a net inflow of US$12.4 billion.

Fortunately, thanks to the surge in Bitcoin prices, Grayscale’s asset size is not so ugly on the books, only falling slightly to US$23.13 billion.

Grayscale CEO: GBTC outflows have ended

Grayscale CEO Michael Sonnenshein told Reuters: We are convinced that GBTC has begun to reach a certain level of balance, with some expected outflows, regardless of Whether it was selling off by bankrupt institutions or some potential rollover trades, these situations are basically a thing of the past.

The selling by bankrupt institutions refers to the GBTC holdings of FTX or the lending institution Genesis before bankruptcy; the rollover refers to investors selling GBTC and holding Bitcoin ETFs from other issuers.

Expected GBTC fee reduction

The current GBTC fee is 1.5%, which is much higher than the 0.25% fee of most competitors.

Sonnenshein said that as time goes by and the market becomes more mature, Grayscale is expected to lower GBTC fees in the future.

Regarding the approval of Ethereum spot ETFs, he is optimistic that the U.S. Securities and Exchange Commission (SEC) will stand on the right side of history and finally approve these products for listing.

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