- Grayscale’s holdings fell below $20 billion after major outflows from Bitcoin and Ethereum ETFs last week.
- Bitcoin Trust recorded $280 million in outflows over a week, reflecting broader withdrawals across crypto ETFs.
Grayscale’s investment funds, particularly its Bitcoin and Ethereum ETFs, have recently experienced substantial outflows, pushing their total holdings below $20 billion. On September 6, the Grayscale Bitcoin Trust (GBTC) saw $52.9 million withdrawn, contributing to a total of $280 million in outflows for the week.
These withdrawals reflect a broader trend across Bitcoin ETFs, which have recorded $706 million in total outflows over the same period. Grayscale’s total assets now sit under $20 billion, signaling a challenging period for the asset manager.
The Ethereum Trust (ETHE) also faced a $10.7 million outflow on September 6, adding to the pressure on Grayscale’s asset base. While ETHE had seen some inflows earlier in the year, recent market conditions have driven a shift in sentiment.
Ethereum, in particular, has encountered price volatility and increasing competition from other blockchain networks. These factors have led to a decline in deposits and a rise in redemptions.
This contraction in Grayscale’s asset base aligns with a broader slowdown in the cryptocurrency market. Both Bitcoin and Ethereum have experienced price drops following weaker-than-expected U.S. jobs data.
Bitcoin’s price fell sharply, leading to $300 million in liquidations, while Ethereum also suffered a decline, compounded by a $45 million ETH selloff. As of the latest data by ETHNews, Bitcoin was trading at $54,781, and Ethereum was valued at $2,305.
Despite the outflows, some analysts suggest that the market could see a reversal. On-chain data indicate that the recent declines may stabilize, with potential for a price correction in the near future.
However, Grayscale and other ETF providers continue to face pressure as investors weigh market risks and opportunities, leading to uncertainty in the short term.
