Much of GBTC's outflows come from Genesis selling shares, says analyst
GBTC's notable outflows this week are likely due to Genesis, says an exchange-traded fund (ETF) analyst.
Bitcoin's price fell below $64,000 on March 22, and it seems that the digital asset financial firm Genesis is trading in its GBTC shares to buy the dip, says Eric Balchunas, senior ETF analyst at Bloomberg.
GBTC had outflows yes, but it is largely Genesis (we know this for fact), who is simply exchanging GBTC shares for spot BTC, so net neutral event (plus GBTC is all pre-ETF money). Add it up, the ETFs have been net buyers of BTC (and none of the new money has left in fact more has come in). As usual, when it comes to selloffs, the call is coming from inside the house.
GBTC experienced a record daily outflow of $642.5 million on March 18, with $1.84 billion of total outflows between March 18 and March 21, according to The Block's Data Dashboard.
GBTC is a converted spot bitcoin ETF issued by the digital asset management firm Grayscale Investments.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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