Grayscale’s GBTC Bitcoin Holdings Halve in Three Months
Since the launch of the U.S. spot bitcoin exchange-traded funds on Jan. 11, Grayscale’s GBTC bitcoin holdings have halved in approximately three months. This is in contrast to newer ETFs from BlackRock, Fidelity, and other companies, which have seen significant growth.
- Grayscale’s pre-existing Bitcoin Trust was converted into an ETF rather than launching from scratch.
- GBTC charges a higher fee of 1.5% compared to competitors like BlackRock’s IBIT which charges 0.12%.
- Current disclosures show GBTC’s bitcoin holdings have fallen to around 311,621 from approximately 619,220.
Impact of ETF Launch on GBTC’s Assets Under Management
Despite the drop in bitcoin holdings, GBTC’s assets under management in U.S. dollar terms have fallen by 31% since Jan. 11. This decrease is less pronounced due to the rise in bitcoin’s price since the ETFs launched.
- BlackRock’s IBIT and Fidelity’s FBTC have gained market share by bitcoin holdings.
- GBTC’s market share has dropped from 100% at launch to 37.3% currently.
- Combined assets held by all U.S. spot bitcoin ETFs now amount to nearly 840,000 BTC.
BlackRock and Grayscale See Flows Amid Hesitant Market
BlackRock’s IBIT and Grayscale’s GBTC have been the only U.S. spot bitcoin ETFs to record any flows over two trading days. However, recent outflows from GBTC have impacted overall net inflows into the ETFs since their launch.
- IBIT registered inflows of $73.4 million on Monday.
- GBTC saw outflows of $110.1 million, resulting in a $36.7 million net outflow.
- Overall net inflows into U.S. spot bitcoin ETFs have totaled $12.5 billion.
Hong Kong Approves First Batch of Spot Bitcoin and Ether ETFs
On Monday, Hong Kong’s Securities and Futures Commission approved several spot bitcoin and ether ETFs managed by firms like China Asset Management, Harvest Global, Bosera, and HashKey. The approval paves the way for the launch of these ETFs, expected as early as late April.
- OSL, a sub-custodian for two fund managers, indicated the spot bitcoin funds could go live soon.
- Some analysts believe demand for the new products may be substantial.
- Bloomberg ETF analysts suggest the Hong Kong crypto ETFs may struggle to attract significant AUM.
Bitcoin Price Drops Amid Geopolitical Tensions
Bitcoin’s price has dropped by 4% over the past 24 hours and 10% over the past week to $63,459. This decline comes amidst geopolitical tensions, but the cryptocurrency remains 50% up year-to-date despite the recent volatility.
- Bitcoin’s halving event, where the miners’ block subsidy reward will be cut in half, is just four days away.
- The event is scheduled to take place soon, setting the stage for potential price fluctuations.
Hot Take: Stay Informed and Keep an Eye on Market Developments
As the crypto market continues to evolve, it’s crucial to stay informed about the latest news and trends impacting digital assets. Keep an eye on market developments, regulatory approvals, and price fluctuations to make informed decisions about your investments and portfolio. Stay updated to navigate the dynamic landscape of cryptocurrencies effectively.
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