According to Michael Sonnenshein, the selling associated with the settlements of insolvent cryptocurrency companies such as FTX is "largely behind us."
According to Reuters on Wednesday, Michael Sonnenshein, CEO of digital asset investment management Grayscale, believes withdrawals from the company's bitcoin (BTC) exchange-traded fund (ETF) have stabilized.
As said in an appearance on a Reuters podcast, Sonnenshein stated that part of the selling associated with settlements of bankrupt cryptocurrency companies like FTX is "largely behind us," according to the report.
Grayscale's product (GBTC), which had been around for a while as a trust, saw large withdrawals when the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin ETFs in January. This was probably because long-time investors sold their shares to participate in one of the new funds.
The fact that GBTC's fees were significantly higher than those of its rivals was another factor in the withdrawals. Sonnenshein stated last month that he anticipates a gradual drop in the fund's fees.
According to BitMEX Research, GBTC has seen outflows of $15 billion in the last three months. These were reaching $600 million a day in March, but they have subsequently dropped dramatically. They were $303 million on Monday and $155 million on Tuesday of this week.
Grayscale did not reply right away to CoinDesk's request for further comment.