Grayscale, the world’s largest crypto asset manager, has experienced a significant reduction in its Bitcoin holdings since its conversion into an ETF in mid-January.
On March 4th, GBTC witnessed its 36th consecutive day of outflows, with 5,450 BTC or $368 million exiting the trust. Since its conversion, total outflows have reached $9.26 billion, according to BitMEX Research.
Prior to its ETF conversion, Grayscale held approximately 620,000 BTC, as reported by Coinglass. However, with the launch of Grayscale’s spot Bitcoin ETF, investors gained the ability to redeem their shares for Bitcoin, leading to a reduction in holdings. Additionally, GBTC’s higher fees compared to other ETFs like BlackRock’s IBIT and Fidelity’s FBTC have contributed to the decline.
Market observers speculate about when GBTC may witness the end of its “Bitcoin bleed,” with differing opinions on the potential timing of this event.
Despite GBTC’s challenges, the nine other spot Bitcoin ETFs have surpassed expectations amid a sustained Bitcoin rally. March 4th marked the second-largest volume day for these ETFs, with significant inflows reported for various funds, including BlackRock IBIT and Fidelity.
Fidelity recorded a record day for inflows on March 4th, surpassing the outflows from GBTC. Bitwise Bitcoin ETF also experienced notable inflows, indicating continued investor interest in these alternative investment vehicles.
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