Grayscale's GBTC Bitcoin holdings have fallen more than 60% since the ETF's debut

Share this article

Grayscale, the second-largest crypto asset manager, has seen more than 60% of its Bitcoin holdings in its Grayscale Bitcoin Trust (GBTC) reduced since the fund became an exchange-traded fund (ETF), according to a report by the cryptocurrency exchange. data from Coinglass.

In January, when Grayscale converted its Bitcoin Trust into an ETF, GBTC held nearly 620,000 Bitcoin (BTC). As of April 28, that number had dropped to roughly 227,400 BTC, valued at about $13.3 billion at current prices.

Continuous outflows from Grayscale Bitcoin Trust continued in Post-ETF conversion in Januaryattributed to high management fees and competitive pressures from other funds such as BlackRock's IBIT and Fidelity's FBTC.

The fund, once the largest Bitcoin ETF, has been overtaken by BlackRock's iShares Bitcoin Trust, which claimed first place just five months after its launch.

So far this week, investors have poured more than $220 million into IBIT, data from Farside Investors programs.

Having recorded net inflows almost daily since its debut, IBIT has maintained its dominance in the Bitcoin ETF market, with approximately 358,000 BTC, valued at around $22 billion.

Observers have been speculating on when GBTC’s Bitcoin drain will end. Data from Farside Investors shows that GBTC outflows have begun to slow since the beginning of this month. The ETF ended Wednesday’s trading session with a net outflow of $8 million, its lowest withdrawal since mid-July.

Grayscale's Bitcoin Mini Trust Sees First Outflows

As updated by Farside InvestorsGrayscale’s Bitcoin Mini Trust (BTC), the low-fee version of GBTC, saw its first outflows on August 28, when investors withdrew over $8 million.

Despite this, BTC has still attracted nearly $350 million in net capital since its launch in late July, narrowing the gap with competing funds run by Invesco and Franklin Templeton.

Share this article