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Grayscale CEO: GBTC net outflows have gradually stabilized, expected to reduce fees

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Grayscale CEO: GBTC net outflows have gradually stabilized, expected to reduce fees

Grayscale Investments CEO Michael Sonnenshein said on the Inside ETF program to Reuters that after months of investor selling, the net outflows of GBTC may soon reach equilibrium.

GBTC's net outflows rank second in the past 15 years. Grayscale reapplies for a mini ETF with the code name "BTC."

GBTC Net Outflows Near $16 Billion

BitMEX Research data shows that since its listing in January, GBTC has seen total net outflows of $15.9 billion, despite overall ETF inflows of $12.4 billion.

Benefiting from the surge in Bitcoin prices, Grayscale's asset under management (AUM) doesn't look too shabby on paper, only slightly decreasing to $23.13 billion.

Grayscale CEO: GBTC Outflows Have Ended

Grayscale CEO Michael Sonnenshein told Reuters:

We believe that GBTC has started to reach a certain equilibrium, and some anticipated capital outflows, whether it's from bankrupt institutions selling off or some potential transfer trades, these situations have pretty much become a thing of the past.

The bankrupt institutions selling off refer to FTX or lending institution Genesis holding GBTC before bankruptcy; transfer trades refer to investors selling GBTC to hold Bitcoin ETFs from other issuers.

Expected Fee Reduction for GBTC

The current fee for GBTC is 1.5%, significantly higher than the 0.25% fees of most competitors.

Sonnenshein stated that as time goes on and the market matures, Grayscale is expected to reduce the fees for GBTC.

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

Ethereum falls below $3.2K, Grayscale GBTC sees net outflows again, CEO confirms fee reduction