Key Points
- Grayscale Bitcoin Trust (GBTC) experienced a significant withdrawal of around $494 million worth of Bitcoin on March 11.
- Grayscale’s holdings have declined by 36% since the trust transitioned into a spot Exchange-Traded Fund (ETF) in January.
On March 11, the Grayscale Bitcoin Trust (GBTC) faced a significant withdrawal. This involved Bitcoin valued at approximately $494 million, or about 6,850 BTC, being removed from the fund.
BitMEX Research initially referred to this withdrawal as a record outflow. However, they later clarified that it was a historic high in terms of the Bitcoin price. The claim from BitMEX faced scrutiny as GBTC had previously seen outflows surpassing $500 million during five days in January and again on February 29.
Diminishing Holdings for Grayscale
These figures indicate a broader trend of declining holdings for Grayscale. Since the trust transitioned into a spot Exchange-Traded Fund (ETF) in January, its holdings have dropped by 36%. Prior to this transition, Grayscale’s Bitcoin stash amounted to approximately 620,000 BTC, a figure that has since decreased to 395,744 BTC, now valued at around $28.5 billion according to the latest prices.
Since becoming a spot ETF, GBTC has experienced consistent outflows, totaling $9.26 billion. The new ETF structure has allowed investors to redeem shares for Bitcoin directly, an option that wasn’t available in its previous format. This change, along with GBTC’s higher fees compared to competitors like BlackRock’s IBIT and Fidelity’s FBTC, has contributed to the ongoing outflows.
Positive Net Flow to All ETFs
Despite the significant withdrawals, the net flow to all ETFs has been predominantly positive since February, with only two days of net negative flow. Competitors like BlackRock and Fidelity have seen increased inflows of Bitcoin, contrasting with Grayscale’s outflows. Notably, VanEck’s spot Bitcoin ETF, HODL, saw a record inflow of $119 million on March 11, following the announcement of a temporary fee reduction. Additionally, Fidelity’s FBTC fund and Bitwise’s BITB reported inflows of $215 million and $50 million, respectively.
On the other hand, the Grayscale Solana Trust (GSOL) saw its secondary market price peak at $540 on March 8, with a premium rate of 873%. This indicates a significant discrepancy between the market price and the Net Asset Value (NAV). This unusual spike has led to discussions among investors, with some attributing it to potential institutional activities, notably involving Pantera Capital and its dealings with staked Solana (SOL) assets. This situation has sparked speculation about the reasons behind GSOL’s market performance and the possibility of undisclosed institutional information.
