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As of March 22, the bitcoin holdings of Grayscale’s Bitcoin Trust (GBTC) have diminished by 27,917.37 compared to its status three days prior, now amounting to 350,252 bitcoin valued at approximately $22.2 billion. Since evolving into an exchange-traded fund (ETF) listed on public exchanges, GBTC has shed billions in bitcoin over the preceding 71 days.
‘Inside the House’
In recent developments, the Grayscale Bitcoin Trust (NYSE: GBTC) has seen a substantial decrease in its bitcoin reserves, now holding 350,252 BTC. This reduction, amounting to 27,917.37 BTC or about $1.7 billion, occurred over the past three days. The significant outflows from GBTC have sparked widespread conjecture and debate across social networks. Eric Balchunas, Bloomberg’s lead ETF analyst, attributed the exodus primarily to Genesis, indicating a strategic shift.
“The nine new bitcoin ETFs have taken in about $1.2 [billion] in past 5 days as price declined 8%,” Balchunas commented on X. “GBTC had outflows yes, but it is largely Genesis (we know this for fact), who is simply exchanging GBTC shares for spot [bitcoin], so net neutral event (plus GBTC is all pre-ETF money). Add it up, the ETFs have been net buyers of [bitcoin] (and none of the new money has left in fact more has come in). As usual, when it comes to selloffs, the call is coming from inside the house.”
Exactly 71 days ago, GBTC’s bitcoin inventory was significantly larger, boasting a total of 617,079.99 BTC just a day after it commenced public trading. Since that day, a staggering 266,827.99 BTC, valued at $16.9 billion, has been withdrawn from its reserves. This hypothetically translates to an average daily reduction of approximately 3,758 BTC over this period. In theory, at the present exchange rates for BTC, it means an average of about $238 million worth of bitcoin could have been moved out on a daily basis. To this day, observers are keenly watching to see when GBTC’s outflows will level off.
The once coveted premium of GBTC has also faded into history, with its shares no longer commanding the premium or facing the discount to net asset value (NAV) they once did. Over the last month, GBTC shares on the NYSE Arca have climbed by 25%, yet they’ve seen a downturn of 5.96% in the past five days, including a dip of 1.94% during Friday’s trading session. Moreover, GBTC might be on the brink of losing its status as the bitcoin exchange-traded fund with the largest holdings, as Blackrock now oversees 242,829.94 BTC.
What do you think about GBTC’s outflow over the 71 days? Share your thoughts and opinions about this subject in the comments section below.