FTX has been a major contributor to GBTC sales, but there is more to come.

Will the end of FTX's sales stop the bleeding?

Since the launch of 10 bitcoin spot ETFs earlier this month, Grayscale has been hemorrhaging funds at the rate of many thousands of BTC per day. Even as the other nine ETF scoop up coins at a staggering rate, GBTC's sells have threatened to offset the new buy pressure this introduces to the market.

While blame has so far fallen on GBTC's greedy fees (Grayscale charges 1.5%, a full 1% higher than most of its competition), it now appears there has been another culprit: FTX.

FTX: The Gift That Keeps On Giving

A significant percentage of the bleeding has been FTX's bankruptcy executors, who have been selling the exchange's full holdings of 22 million GBTC shares, according to data viewed and insiders questioned by CoinDesk.

FTX has now sold out, having dumped GBTC worth around $1 billion. This translates to somewhere in the region of 22,000 to 25,000 BTC, or roughly one third of GBTC outflows, which have totaled an incredible 66,000 BTC to date.

Now that FTX has finished selling, it's possible the rate of outflows will slow, allowing the net inflow into the ten ETFs to increase—though of course, Grayscale's high fees persist. This, in itself, may mean there is significant selling pressure still to come, and for some time. Traders have grown used to checking the on-chain movement of coins from Grayscale to Coinbase, anticipating the next round of sales.

New HODLers?

If and when the Grayscale selling pressure eases, more and more BTC will be locked away in ETFs. The current tally is upwards of 94,000 BTC in the new ETFs, and 66,000 exiting Grayscale, for a net total of 28,000 BTC. (T+1 reporting means these figures cannot be fully up-to-date.)

While these are able to come back onto the market at any time should the holders decide to sell, there's a good chance that the new owners will be buying and forgetting about their purchases for many years.

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