Grayscale’s Bitcoin Holdings Reportedly Dwindle as ETF Peers Rally in Acquisition
Weeks after the launch of the spot Bitcoin ETFs, Grayscale’s Bitcoin holdings have reportedly decreased. Crypto commentator and analyst Seth revealed on X that Grayscale’s holdings have reduced from 619,000 BTC in January to 478,000 BTC.
Seth also notes that, amidst this reduction, investment giants like Blackrock and Fidelity have been actively absorbing the outflow. Blackrock’s holdings now reportedly stand at a staggering $3.2 billion in Bitcoin.
BTC holdings reduced
The numbers point out the substantial movement of Bitcoin from Grayscale to its other ETF-issuing peers.
Market observer MartiniGuyYT highlighted the Bitcoin selling rate of Grayscale customers. The influencer notes that they are selling $150 million worth of Bitcoin every day.
With $26 billion still in GBTC, he projected a doomsday scenario for Grayscale. If the selling persists at the current rate, he estimated that Grayscale could deplete its holdings within 176 days, potentially leading to its end.
According to Bloomberg analyst James Seyffart, the latest flow on Friday saw an increase of $80 million, with GBTC still leading in volume.
Grayscale Bitcoin Trust (GBTC) experienced a decline until Thursday. The total flows over the last 16 days show a negative $5,967.9 million. Total volume over 17 days turned positive.
Update for the #Bitcoin ETF Cointucky Derby. Flows from Friday were +$80 million. $GBTC leading the volume today. pic.twitter.com/Lqz7gRCRTx
— James Seyffart (@JSeyff) February 5, 2024
Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Blackrock’s iShares Bitcoin Trust (IBIT) have seen substantial inflows. FBTC’s total flows stand at a positive $2,600.1 million, while IBIT boasts $3,059.9 million over the same period.
Players like ARK Invest’s 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Invesco Galaxy Bitcoin ETF (BTCO), and WisdomTree Bitcoin Fund (BTCW) have seen modest inflows and outflows.
Meanwhile, less than a month after receiving the go-ahead from the SEC, Grayscale’s CEO, Michael Sonnenshein, has started pushing for the launch of listed options for a spot Bitcoin ETF in the United States.
The pace of outflows from Grayscale’s Bitcoin Trust (GBTC) also appears to be decelerating. Grayscale reported a reduced outflow over the last two weeks.
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
