USD 6 Billion Exodus of Grayscale’s GBTC Bitcoin Holdings in 22 Days
Grayscale's Bitcoin Trust’s GBTC holdings have fallen from 482,592.18 BTC to the current 478,337.43 BTC in a day, registering a reduction of 4,254.75 after the recent release of Bitcoin valued at USD 184.19 million. GBTC has witnessed an exodus of 138,742.56 Bitcoin, valued at marginally over USD 6 billion at prevailing exchange rates, since January 12.
Significant Divestment of More Than 22% of Bitcoin Holdings
Grayscale’s Bitcoin Trust has seen a significant divestment of 138,742.56 Bitcoin in the last 22 days. The scale of divestment average is approximately 6,308.34 BTC per day for the given period. Notably, GBTC's performance as a spot Bitcoin exchange-traded fund (ETF) is only for 15 trading days, commencing on January 11, 2024.
GBTC held 617,079.99 Bitcoin on its initial trading debut, but its reserves since then have plummeted by 22.48%. However, Grayscale’s fund has been a dominant force in trading volume during 14 out of the 15 trading sessions. The onchain metrics provided by Arkham Intelligence reveal a substantial outflow of GBTC.
Arkham disclosed in September 2023 that GBTC’s holdings were distributed across more than 1,750 distinct addresses, each holding no more than 1,000 Bitcoin. Grayscale is holding them for an extended period. Notably, some GBTC wallets have experienced balance changes recently.
Profitable Arbitrage Opportunities Driving Redemptions
Trading at a discount offers an opening for savvy traders poised to seize arbitrage opportunities and seek to profit from the divergence between the share price and the value of Bitcoin. The redemptions are likely to continue as long as profitable arbitrage opportunities exist. The shifting market dynamics and investor strategies aim at capitalizing on historical price disparities.
What is your take on the GBTC outflow over the past 22 days? Please share your thoughts and opinions in the comments section below.
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