Asset management firm Grayscale Investments recorded combined outflows of more than $20.4 billion from its Bitcoin and Ethereum spot exchange-traded funds (ETFs).
The Grayscale Bitcoin Trust ETF (GBTC) has lost an average of about $137.7 million a day in the seven months since its launch on Jan. 11. As of July 29, GBTC had recorded total outflows of $18.86 billion.
In contrast, the other nine spot Bitcoin (BTC) ETFs approved simultaneously in the U.S. all maintained positive balances, as shown below.
The largest investment is BlackRock’s iShares Bitcoin Trust (IBIT), which currently holds $19.93 billion in BTC. Other notable holders include Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $9.9 billion, Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB) with $2.6 billion, and the Bitwise Bitcoin ETF (BITB) with $2.09 billion.
To learn more about how cryptocurrency ETFs work, check out Cointelegraph’s guide .
The newly launched Grayscale Ethereum Trust (ETHE) has performed comparable to GBTC in terms of investment outflows.
The Ether (ETH) fund lost $1.72 billion in five days, bringing Grayscale’s total crypto ETF outflows to $20.58 billion, and in the process, Grayscale lost 18.7% of its original seed funding of roughly $9.2 billion.
Related: SEC Approves Grayscale Bitcoin Mini Trust to Trade on NYSE Arca
On July 30, Steno Research senior analyst Mads Eberhart argued that Grayscale’s massive exodus from ETHE should subside by August 2. However, Eberhart sees strong initial exodus as a reason for near-term bullishness.
“Grayscale Bitcoin ETF outflows have significantly decreased after the 11th trading session,” he said.
“The Grayscale Ethereum ETF has experienced much higher outflows compared to its assets under management, [assets under management]We believe the peak of the spill will occur this week.”
Anonymous trader Evanss6 echoed Eberhardt’s sentiments by providing a side-by-side comparison of the launch of spot BTC and ETH ETFs.
According to Evan, outflows from the Bitcoin ETF bottomed out on the seventh trading day, when cumulative outflows into GBTC reached 13.2% of the initial fund, adding that Bitcoin continued to “plummet.” [approximately] After GBTC outflows bottomed, it increased 92% in 50 days.
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