Trend of GBTC Outflows Slows Down as Holdings Decrease
In the most recent update, Grayscale’s Bitcoin Trust (GBTC) experienced a decrease of 4,461.36 bitcoin, valued at approximately $190.53 million, over the past day. Since Jan. 12, 2024, GBTC has observed a cumulative reduction of about 124,967.54 bitcoin, equivalent to an estimated $5.33 billion. Recent trends indicate a slowdown in the outflows from GBTC, with each trading day experiencing a smaller decline over the last two sessions. As of Jan. 30, 2024, data revealed that GBTC’s holdings dipped below the 500,000 BTC mark, registering at 496,573.81 BTC. However, in the past 24 hours, the holdings have further decreased by 4,461.36 BTC, bringing the total down to 492,112.45 BTC, currently valued at approximately $21.43 billion.
Comparison to New ETFs Accumulating Bitcoin
The recent reductions in GBTC have been notable, yet they pale in comparison to the substantial drop of 20,803 bitcoin observed on Jan. 26. From Jan. 12 to Jan. 31, 2024, GBTC’s reserves have shrunk from 617,079.99 BTC to 492,112.45 BTC, marking a significant loss of 124,967.54 BTC, according to current metrics. Meanwhile, the nine recently launched spot bitcoin exchange-traded funds have collectively garnered an impressive total of 160,661.38 BTC. Various ETFs such as Blackrock’s IBIT, Fidelity’s FBTC, Ark Invest’s ARKB, and Bitwise’s BITB have seen growth in their bitcoin holdings over the past day.
GBTC’s Dominance Despite ETF Accumulation
As highlighted in their Jan. 31, 2024, daily holdings report, several ETFs including Invesco Galaxy ETF BTCO, Vaneck’s HODL ETF, Valkyrie’s BRRR ETF, and Franklin Templeton’s ETF, have seen increases in their bitcoin holdings. However, the combined accumulation of these nine new ETFs is still significantly smaller compared to GBTC’s fund, which remains notably larger, being 3.11 times more valuable than the aggregate of all nine ETFs. GBTC’s decreasing holdings indicate continued outflows, but the slower rate of decline suggests a potential stabilization in the near future.
Hot Take: Shift in Crypto Investment Landscape
The recent decrease in GBTC’s bitcoin holdings while new ETFs accumulate bitcoin highlights a potential shift in the crypto investment landscape. With several established and well-known financial institutions entering the market through new ETF offerings, investors now have more options to access cryptocurrency. This diversification may lead to a redistribution of funds and investments away from GBTC. While GBTC still maintains a dominant position, the rise of these new ETFs signals increased competition and a broader participation in the bitcoin market. It remains to be seen how this changing landscape will impact the overall dynamics and future trends of the crypto industry.
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