Grayscale Investments has seen over $20.4 billion flow out of its Bitcoin and Ether exchange-traded funds (ETFs) recently.
Since launching on January 11, the Grayscale Bitcoin Trust ETF (GBTC) has experienced an average daily outflow of about $137.7 million. As of July 29, GBTC has lost a total of $18.86 billion.
In contrast, the nine other Bitcoin ETFs approved in the U.S. are seeing positive investment flows. BlackRock’s iShares Bitcoin Trust (IBIT) is leading with $19.93 billion in investments. Other notable ETFs include Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $9.9 billion, ARK’s 21Shares Bitcoin ETF (ARKB) with $2.6 billion, and Bitwise Bitcoin ETF (BITB) with $2.09 billion.
The new Grayscale Ethereum Trust (ETHE) is also seeing heavy outflows, similar to GBTC. In just five days, the Ether fund lost $1.72 billion, bringing Grayscale’s total crypto ETF outflows to $20.58 billion. This represents a loss of 18.7% of its original $9.2 billion investment.
Steno Research analyst Mads Eberhardt expects these large outflows to decrease by August 2, but believes the heavy early outflows could signal a short-term price increase. He noted that outflows from the Grayscale Bitcoin ETF decreased significantly after the eleventh trading session, and he expects the same for the Ethereum ETF.
Trader Evanss6 agrees, noting that Bitcoin ETF outflows hit a low point on the seventh trading day. Historically, after such drops, Bitcoin prices have surged by around 92% in the following 50 days.
