Approximately 620,000 Bitcoin were held by Grayscale when its GBTC fund was transformed into an ETF. It is currently valued at about 420,680 Bitcoin.
Since its conversion to an ETF in mid-January, Grayscale, the largest cryptocurrency asset manager in the world, has seen the removal of roughly 33% of its Bitcoin holdings on GBTC.
According to BitMEX Research, GBTC experienced its 36th day of consecutive outflows on March 4, with 5,450 BTC, or $368 million, departing the trust, bringing the total outflow since its conversion to $9.26 billion.
According to Coinglass, Grayscale controlled about 620,000 BTC before to converting the fund to an ETF.
However, investors were now able to do something that was prohibited under the prior structure: redeeming their shares for Bitcoin, thanks to Grayscale’s spot Bitcoin ETF launch. The fact that GBTC charges greater fees than certain other ETFs, like Fidelity’s FBTC and BlackRock’s IBIT, hasn’t helped either.
As of right now, the GBTC fund’s holdings of 420,682 Bitcoin are valued at an estimated $28.8 billion based on its website and portfolio.
Market watchers haven’t stopped speculating about when GBTC’s “Bitcoin bleed” would stop.
When GBTC outflows decreased in late January and early February, some observers hypothesized that they might be ending. But in an attempt to pay back investors, bankruptcy courts permitted cryptocurrency lender Genesis to sell off over $1.3 billion worth of GBTC shares in mid-February.
In the past, Bloomberg ETF analyst Eric Balchunas predicted that the bleeding would halt when GBTC reached 25% of outstanding shares; however, most participants in a self-selected poll on X predicted that it would occur between 35 and 50% of the time.
“New Nine” ETFs are Still in High Demand
In the midst of a persistent Bitcoin surge, the nine other spot Bitcoin ETFs have continued to outperform forecasts.
Balchunas stated that data indicates that March 4th, with around $5.5 billion in activity, was the second-largest day for the ten spot Bitcoin ETFs.
The BlackRock IBIT fund now has more than $11 billion in assets under management, with a daily volume of about $2.4 billion.
In the last six days, the volume of each of the new ETFs has increased by over 30%, Balchunas continued, “which will prob help keep the flow ball rolling.”
According to Farside Investors’ preliminary figures, Fidelity inflows on March 4th reached a record high of $404.6 million. It said, “On its own, Fidelity has more than offset the GBTC outflow.”
With inflows of $91 million, the Bitwise Bitcoin ETF (BITB) saw its best day since February 15.
