Grayscale, the world’s largest crypto asset manager, has experienced a significant decrease in its Bitcoin (BTC) holdings since converting its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) in mid-January.
According to recent data from BitMEX Research , GBTC saw its 36th consecutive day of outflows on March 4.
During this period, 5,450 BTC, equivalent to approximately $368 million, left the trust. Since the conversion to an ETF, the total outflow has reached a staggering $9.26 billion.
Prior to the ETF conversion, Grayscale held around 620,000 BTC, as reported by Coinglass.
The launch of the spot Bitcoin ETF by Grayscale introduced a new feature where investors could redeem their shares for Bitcoin, something that was not possible in the previous structure.
Additionally, GBTC’s higher fees compared to other ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC, may have contributed to the outflows.
Currently, the GBTC fund holds 420,682 BTC, which is estimated to be worth around $28.8 billion based on current prices, according to information available on its website and portfolio.
Market observers have been speculating about when the “Bitcoin bleed” in GBTC might come to an end.
While GBTC outflows slowed down in late January and February, some analysts believed they could be nearing their conclusion.
However, in mid-February, bankruptcy courts permitted crypto lender Genesis to liquidate approximately $1.3 billion worth of GBTC shares as part of efforts to reimburse investors.
ETF analyst Eric Balchunas from Bloomberg previously suggested that the outflows would likely stop once GBTC experienced a 25% reduction in outstanding shares.
However, a poll on X indicated that most respondents
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