Massive Outflows Plunge GBTC’s Bitcoin Stash
The Grayscale Bitcoin Trust (GBTC) has experienced significant outflows since its approval as a spot Bitcoin exchange-traded fund (ETF) by the SEC. This has resulted in a substantial decrease in GBTC’s Bitcoin stash, and the withdrawals show no signs of slowing down.
GBTC’s Bitcoin Holdings Fall 15%
Data shared by Ki Young Ju, the founder and CEO of CryptoQuant, reveals that GBTC’s BTC holdings have dropped by 15% in the past seven trading days.
Deeper Analysis Reveals Massive Losses
A more detailed analysis by Lookonchain shows that Grayscale’s ETF has lost over 95,600 BTC since its launch on national securities exchanges on January 11.
Highest Outflows Recorded on Multiple Days
On January 16, 18, 22, 23, and 24, GBTC saw significant outflows of BTC, with withdrawals ranging from 13,793 to 15,986 BTC. The lowest outflow occurred on the day the ETF went live, with only 2,083 BTC being offloaded.
Other ETFs Increase Their Holdings
While GBTC’s BTC stash is decreasing, the other eight ETFs are increasing their holdings. Since their launch, these products have added over 110,000 BTC to their stash. On the day GBTC offloaded around 13,179 BTC, the other ETFs added a total of 8,251 BTC to their holdings.
Potential Impact on BTC Price
The ongoing sell-off by GBTC could have an impact on the price of BTC. With almost $4 billion in outflows and around $21 billion of shares yet to be liquidated, analysts predict that BTC’s price may remain stagnant or even decrease until the liquidation process is complete.
Alternative ETFs May Drive Bitcoin Price Rally
However, some experts, like Mike Novogratz, believe that investors will eventually shift their focus to alternative ETFs, which could lead to a rally in bitcoin’s price.
Hot Take: GBTC’s Massive Outflows Pose Challenges for Bitcoin
The significant outflows from the Grayscale Bitcoin Trust (GBTC) have raised concerns about the impact on BTC’s price. With a 15% decrease in GBTC’s BTC holdings and ongoing withdrawals, there is uncertainty about the future of the ETF. Meanwhile, other ETFs are increasing their BTC stash. The sell-off by GBTC could put pressure on BTC’s price until the $21 billion liquidation process is complete. However, some experts believe that investors will shift their focus to alternative ETFs, potentially leading to a rally in bitcoin’s price. The coming weeks will be crucial in determining the direction of BTC’s price as GBTC continues to experience massive outflows.
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