Grayscale Bitcoin Trust (GBTC) Has Made Undisclosed Bitcoin Outflows
According to CryptoQuant CEO Ki Young Ju, there is a discrepancy between the on-chain data and off-chain disclosures made by the Grayscale Bitcoin Trust (GBTC). Ju shared charts showing the disclosed holdings of GBTC and the actual reserve of the ETF tracked through on-chain addresses. The charts revealed a gap of 19,500 BTC between the two holdings. An update on the charts shows that the disclosed holdings dropped to about 566,973 BTC, but it is still lower than the on-chain reserve of 561,700 BTC. This suggests that GBTC has yet to disclose all of its outflows.
Old Bitcoin Tokens Are Moving
Ki Young Ju also revealed that the Average Dormancy indicator for Bitcoin has spiked recently. This indicator measures the average number of dormant days for Bitcoin based on the “Coin Days Destroyed” (CDD) metric. The chart shows that the 30-day simple moving average (SMA) Average Dormancy reached a five-year high, indicating a large number of old coins being transacted on the blockchain. However, Ju believes that this spike is unlikely to be caused by the GBTC outflows as their transaction dates do not align closely with the spikes in CDD.
Hot Take: GBTC’s Undisclosed Outflows Raise Concerns
The undisclosed outflows from Grayscale Bitcoin Trust (GBTC) have raised concerns about transparency and disclosure practices. The discrepancy between the disclosed holdings and the actual reserve tracked through on-chain data has led to speculation about GBTC’s operations. Investors may be wary of investing in GBTC if there is uncertainty surrounding its holdings and potential undisclosed outflows. This situation highlights the importance of accurate and timely disclosures in the cryptocurrency industry to maintain trust and confidence among investors.
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