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.