The US’s largest crypto exchange Coinbase has focused on the outflows in spot Bitcoin exchange-traded funds (ETF) and their potential impacts.
The crypto exchange Coibase included the current status of spot Bitcoin ETFs in its recent research report.
The exchange pointed out that outflows in Grayscale Bitcoin Trust (GBTC) reached $1.83 billion in a period of 4 days, indicating that the selling pressure could have come from the bankruptcy estate of Genesis Global. The report conveyed by Coinbase emphasized that there were net outflows of $836 million between March 18 and March 21.
Analysts David Duong and David Han reminded that the bankrupt crypto company Genesis showed 30.9 million GBTC shares as collateral against a $1.2 billion debtGemini Earn users in the third quarter of 2022. It was not confirmed whether the outflows in GBTC were related to these shares belonging to Genesis or not.
Additionally, the recent bankruptcy proceedings of Genesis and the billions of dollars it was preparing to pay to its creditors were interpreted as a sign of GBTC sales.
Overall, the outflows from spot Bitcoin ETFs had negative effects on the entire cryptocurrency market, especially on Bitcoin.
