Grayscale Bitcoin Trust Holdings Dips Amid High GBTC Trading Activity
GBTC, the Grayscale Bitcoin Trust, has recently witnessed a considerable outflow of Bitcoin. A total of 10,823.86 Bitcoin, valued at approximately USD 447.40 million, were withdrawn from the GBTC holdings between Thursday and Friday morning.
GBTC Holdings Declines by 10,800 BTC in One Day
GBTC experienced significant outflows on Thursday, January 18, 2024, when the fund recorded a trade volume of USD 2.11 billion. The Grayscale Bitcoin Trust has emerged as the frontrunner in trade volume among all the newly launched spot Bitcoin exchange-traded funds (ETFs).
The surge in volume runs parallel to the increase in bitcoin outflows, primarily due to GBTC investors booking their profits. GBTC reportedly held substantial reserves of 592,097.78 BTC on January 18. However, it has registered a 1.82% decline as of today. GBTC’s current holdings have declined to 581,273.92 BTC as of January 19, 2024.
The decline of 1.82% translates to a reduction of 10,823.86 BTC, valued at USD 447.4 million, based on the current BTC exchange price. The total value of assets under management (AUM) currently stands at USD 23.70 billion, as per GBTC’s website. The outflows from GBTC are parallel to the inflows into spot Bitcoin ETFs managed by Blackrock and Fidelity. Blackrock’s IBIT holds 28,622 BTC, while the Fidelity Wise Origin ETF (FBTC) holds 20,507 BTC, and the Bitwise ETF BITB holds 8,309 BTC as of January 18, 2024.
GBTC is the Top BTC Holder
The million-dollar question for investors is how long the GBTC’s substantial outflows will continue and the possible impact of the Bitcoin movements on the market. Despite the outflows, Grayscale is the top BTC holder, with an ownership of 582,134 BTC, as reported by Arkham Intelligence on January 19. The final figure includes the Bitcoin holdings by Grayscale for its Digital Large Cap Fund, which also experienced a decline of 395.9 BTC on January 16, 2024.
What is your take on GBTC’s Bitcoin holdings declining since the ETFs began trading last week? Please share your thoughts and opinions in the comments section below.
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