GBTC Experiences Significant Bitcoin Outflows
The Grayscale Bitcoin Trust (GBTC) has recently witnessed a significant divestment of bitcoin. Over the course of Thursday to Friday morning, a total of 10,823.86 bitcoin, valued at approximately $447.40 million, was withdrawn from GBTC’s holdings.
High Trade Volume and Increased Outflows
GBTC has experienced notable trade volume, particularly on Jan. 18, 2024, with a recorded volume of $2.11 billion. However, this surge in volume has coincided with a marked increase in bitcoin outflows as GBTC investors realized their profits.
Diminishing Holdings
GBTC’s holdings have diminished by 1.82% since the previous report, resulting in a loss of 10,823.86 bitcoin, valued at $447.4 million. According to archived records, GBTC currently holds 581,273.92 bitcoin.
Outflows coincide with inflows into other ETFs
The outflows from GBTC are happening at the same time as inflows into spot bitcoin ETFs managed by Blackrock and Fidelity. As of Jan. 18, 2024, Blackrock’s IBIT holds 28,622 BTC, while Fidelity’s Wise Origin ETF (FBTC) holds 20,507 BTC, and Bitwise ETF BITB manages around 8,309 BTC.
Impact on the Market and GBTC’s Bitcoin Holdings
The duration of GBTC’s outflows and the impact on the market remain unknown. Despite the recent outflows, Grayscale still holds the most bitcoin, with ownership of 582,134 BTC. This figure includes the bitcoin held for Grayscale’s Digital Large Cap Fund, which also experienced a reduction on Jan. 16, 2024.
Hot Take: GBTC Experiences Significant Bitcoin Outflows
The Grayscale Bitcoin Trust (GBTC) has recently seen a substantial withdrawal of bitcoin from its holdings. This decrease in bitcoin holdings is occurring alongside increased trade volume and the outflows from GBTC into other spot bitcoin ETFs. The impact of these outflows on the market remains uncertain, but it is notable that Grayscale remains the largest BTC holder despite the recent withdrawals. The ongoing movements of large quantities of bitcoin by GBTC and other ETFs indicate continued activity and interest in the cryptocurrency market.
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