Grayscale’s GBTC Witnesses Major Outflows
Grayscale’s exchange-traded fund, GBTC, has experienced a significant decrease in its bitcoin holdings. Over the span of four days, a total of 24,981.22 BTC has been withdrawn from the fund, resulting in a removal of over $1 billion in value from its bitcoin reserves.
Currently, GBTC holds approximately 592,097.78 BTC, valued at around $24.5 billion. Previously, GBTC held an advantage in the market but faced a discount to net asset value in 2019. This discount widened significantly in February 2021 until the fund became a publicly accessible spot bitcoin ETF.
Newly Approved Bitcoin ETFs Accumulate Reserves
While GBTC experiences outflows, other newly approved spot bitcoin ETFs are acquiring BTC reserves. Blackrock’s IBIT currently holds 25,067 BTC, and the Fidelity Wise Origin Bitcoin Fund (FBTC) holds 20,507 BTC. Bitwise’s BITB secures its position as the third-largest bitcoin ETF in terms of BTC reserves with 8,309 BTC.
Ran Neuner, the founder of Crypto Banter, believes that the GBTC outflows will persist. He cautions that other ETFs may not be able to absorb these outflows, and a market correction may be underway with a target of $39,600.
Market Strategists Predict Further Outflows from GBTC
Market strategists from JPMorgan suggest that an additional $1.5 billion could be withdrawn from the bitcoin ETF market through GBTC profit-taking, putting further pressure on bitcoin prices in the coming weeks. Analysts had initially projected a $3 billion decrease in GBTC’s value, and half of this reduction has already occurred.
As of Thursday, bitcoin was trading at $40,838 per unit, with a 24-hour low of $40,600.
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