Grayscale’s GBTC Reduces Bitcoin Holdings by Over 22%
Grayscale’s Bitcoin Trust, GBTC, has recently sold 138,742.56 BTC, equivalent to over $6 billion, since January 12, 2024. The latest batch amounted to a decrease of 4,254.75 BTC in just one day, bringing the current total to 478,337.43 BTC. GBTC has been functioning as a spot bitcoin exchange-traded fund (ETF) for only 15 trading days since its debut on January 11, 2024.
GBTC’s Declining Reserves
Following its initial trading debut, GBTC held 617,079.99 BTC, but this has dropped by 22.48% since then. The outflow of BTC has been consistently below 1,000 BTC per transaction, as indicated by onchain metrics. GBTC had distributed its holdings across more than 1,750 addresses, each holding a maximum of 1,000 BTC.
Long-Standing Coins in GBTC Wallets
GBTC’s wallets held coins for an extended period, with some experiencing recent balance changes. For example, a wallet created in November 2023 executed a transfer of 899.99 BTC just yesterday. Other wallets that had remained dormant for some time have recently become active, preparing for transfers to Coinbase.
Uncertain Redemption Timeline
The timeline for redemptions from Grayscale’s Bitcoin Trust is uncertain due to its prolonged trading below its net asset value. The extended period of trading at a discount has allowed savvy traders to profit from arbitrage opportunities. As long as these opportunities exist, redemptions are likely to continue.
Hot Take: GBTC Reduces Holdings to Capitalize on Market Dynamics
The reduction in GBTC’s bitcoin holdings is strategic, aiming to seize arbitrage opportunities created by the divergence between the share price and the value of bitcoin. This approach maximizes profits from historical price disparities, showcasing how market dynamics and investor strategies impact the redemption process.
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