Data shows decrease in GBTC holdings as Blackrock and Fidelity Bitcoin ETFs expand
Recent data reveals that since the update on Grayscale’s website three days prior, the firm’s most recent figures indicate a significant reduction in its holdings, with over 11,189 bitcoin, valued at approximately $477 million, being withdrawn from GBTC’s reserves. Concurrently, the introduction of spot bitcoin exchange-traded funds (ETFs) by Blackrock, Fidelity, and other companies has led to an increase in their bitcoin assets.
GBTC Cache Slides as Blackrock, Fidelity Bitcoin ETFs Expand Holdings
As of Wednesday, Jan. 17, 2024, data from Grayscale’s GBTC web portal shows that the fund’s bitcoin holdings have decreased to 605,890.87 BTC, valued at $25.84 billion. This represents a decrease of 11,189 BTC since the previous update on Jan. 13, when the holdings were reported at 617,079 BTC. The withdrawal of $477 million from GBTC’s coffers follows similar outflows that occurred in the initial two trading days of Jan. 11-12, 2024.
Blackrock and Fidelity Bitcoin ETFs Expand Holdings
In contrast, Blackrock’s Ishares Bitcoin Trust currently possesses 16,361 BTC, estimated to be worth $707.42 million. Additionally, the Fidelity Wise Origin Bitcoin Fund (FBTC) maintains a holding of 12,112 BTC, approximately valued at $516 million. Both IBIT and FBTC have experienced growth in their bitcoin holdings since their last reporting.
Other Bitcoin ETFs Show Growth
ARK 21shares Bitcoin ETF (ARKB) reported an increase in holdings from 1,625 BTC to 2,535 BTC. Vaneck’s HODL fund also saw an uptick from 1,640.92 BTC to 1,867 BTC. The Galaxy Invesco ETF, known as BTCO, now holds 1,131 BTC, valued at around $48 million. Franklin Templeton’s reported holdings remain unchanged since January 13, at 1,131 BTC. The Valkyrie BRRR fund continues to hold 1,103 BTC, and Wisdomtree’s BTCW has 74 BTC, worth approximately $3.1 million. Collectively, these ETFs hold an estimated 40,751 BTC, which accounts for 6.725% of Grayscale’s GBTC holdings.
Bloomberg analyst remarks on GBTC outflows
Bloomberg’s senior ETF analyst Eric Balchunas commented on social media platform X, remarking on the notable outflow from GBTC. “There’s no denying the GBTC Gouge is big and ugly (def gonna need stitches),” Balchunas said. “Bottom chart gonna be red for a while but good news is that the % discount is shrinking, the closer the two lines at top get to each the less pressure inside the ETF of ppl wanting to get out,” the analyst added.
Hot Take: Decrease in GBTC holdings and increase in Bitcoin ETFs
Recent data reveals a significant reduction in Grayscale’s GBTC holdings, with over 11,189 bitcoin being withdrawn. However, the introduction of spot bitcoin ETFs by companies like Blackrock and Fidelity has led to an increase in their bitcoin assets. Blackrock’s Ishares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund have seen growth in their holdings. Other Bitcoin ETFs, such as ARK 21shares, Vaneck’s HODL fund, and the Galaxy Invesco ETF, have also experienced increases. These developments reflect a diversification and expansion in the cryptocurrency investment market. This shift could have a long-term impact on the dominance of GBTC and the overall cryptocurrency market.
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