- Grayscale's Bitcoin (BTC) exchange-traded fund (ETF) experienced high outflows of nearly $359 million on March 21, following a significant week of outflows, with $642 million exiting on March 18, the largest on record.
- The latest outflows bring this week's total for Grayscale Bitcoin Trust (GBTC) to $1.8 billion, marking the fourth consecutive day of net outflows across all 10 Bitcoin ETFs.
- Analysts speculate that the majority of Grayscale's outflows could soon diminish, possibly due to bankruptcies of crypto firms, with senior Bloomberg ETF analyst Eric Balchunas suggesting that much of the outflows are from bankruptcies of crypto firms due to their "size and consistency."
- As of March 21, Grayscale's Bitcoin Trust held $23.2 billion in assets under management, with GBTC shedding $13.6 billion since being converted to an ETF on Jan. 11.
- Pseudonymous independent researcher ErgoBTC suggests that approximately $1.1 billion worth of GBTC outflows over the past weeks seem to have come from bankrupt crypto lender Genesis.
- Whale Panda, a pseudonymous crypto market commentator, points to a March 19 statement from Genesis indicating that the firm would be returning assets to creditors "in kind," likely selling GBTC shares for Bitcoin.
- Genesis received approval from a United States court on Feb. 14 to begin liquidating its $1.3 billion worth of GBTC shares to repay creditors, while bankrupt cryptocurrency exchange FTX sold 22 million GBTC shares, valued at nearly $1 billion, to liquidate all holdings.
