The largest cryptocurrency exchange in the United States, Coinbase, focused on the outflows in spot Bitcoin exchange-traded funds (ETFs) and their potential impact.
Recently, the cryptocurrency exchange Coinbase included the current state of spot Bitcoin ETFs in its research report.
Pointing out that the outflows regarding the Grayscale Bitcoin Trust (GBTC) reached $1.83 billion within 4 days, the exchange indicated that the selling pressure may 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 to borrow $1.2 billion from Gemini Earn users in the third quarter of 2022. Whether the outflows related to GBTC are connected to these shares owned by Genesis remains unconfirmed.
Meanwhile, the billions of dollars that Genesis is preparing to repay to its creditors in recent weeks were interpreted as a sign of the GBTC sales.
Overall, outflows from spot Bitcoin ETFs had a negative impact on the cryptocurrency market, especially on Bitcoin.
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