Grayscale’s GBTC Has Dropped More Than 60% In Its Bitcoin Holdings Since Its ETF Debut

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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 converted to an exchange-traded fund (ETF), according to data from Coinglass.

Back 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 about 227,400 BTC, valued at about $13.3 billion at current prices.

Continued outflows from the Grayscale Bitcoin Trust continued in January after the ETF conversion, attributed to high management fees and competitive pressures from other funds like BlackRock’s IBIT and Fidelity’s FBTC.

The fund, once the largest Bitcoin ETF, was overtaken by BlackRock’s iShares Bitcoin Trust, which took the top spot just five months after its launch.

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

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

Observers have been speculating about when GBTC’s Bitcoin hemorrhage will end. Data from Farside Investors shows that GBTC outflows have started to taper off since the beginning of the month. The ETF ended Wednesday’s trading session with a net outflow of $8 million, its lowest drawdown since mid-July.

Grayscale’s Bitcoin Mini Trust Records First Releases

As updated by Farside Investors, Grayscale’s Bitcoin Mini Trust (BTC), the low-fee version of GBTC, saw its first outflows on August 28, with investors withdrawing 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 managed by Invesco and Franklin Templeton.

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