Grayscale Investments’ CEO, Michael Sonnenshein, says that the company’s Bitcoin Trust (GBTC) is reaching a balance point after a period of heavy outflows.
Outflows Easing
GBTC has seen over $15 billion in outflows in the past three months. However, the rising value of Bitcoin has helped to cushion Grayscale’s assets under management (AUM), which have only slightly dipped to $23.13 billion.
Sonnenshein believes that the outflows have started to slow down, as the factors that drove them, such as bankruptcy sales and switch trades, are largely behind us.
Competition and Fee Reductions
Grayscale has faced increased competition since the SEC approved spot Bitcoin ETFs from other issuers in January. This has led to some investors switching from GBTC to lower-fee ETFs from companies like BlackRock and Fidelity.
Sonnenshein acknowledges this competition and suggests that Grayscale may lower its fees to stay competitive. He says that GBTC’s fees are likely to come down as the market matures.
Future Outlook
Despite the outflows, Sonnenshein remains optimistic about Grayscale’s future. He says that the company is focused on bringing more investors into the ecosystem and continuing to innovate its products.
Key Statistics
- GBTC currently holds over 323,209K BTC, valued at approximately $22.29 billion.
- This is a significant decrease from the over 618,000 BTC it held at the beginning of the year.
- At press time, BTC traded at $68,840.
