Grayscale, the world’s biggest crypto asset manager, has experienced a significant decrease in its Bitcoin (BTC) holdings since it converted into an ETF in January. On March 4, GBTC recorded its 36th consecutive day of outflows, with 5,450 BTC or $368 million leaving the trust. Since its conversion, the total outflow amounts to $9.26 billion. Prior to the conversion, Grayscale held approximately 620,000 BTC. The launch of Grayscale’s spot Bitcoin ETF allowed investors to redeem their shares for Bitcoin, which was not possible in the previous structure. Additionally, GBTC has higher fees compared to other ETFs like BlackRock’s IBIT and Fidelity’s FBTC. Currently, the GBTC fund holds 420,682 BTC worth around $28.8 billion. Speculation continues regarding when GBTC will see the end of its “Bitcoin bleed.” Outflows had slowed down in late January and February, leading some analysts to believe that it may be coming to an end. However, in mid-February, bankruptcy courts permitted crypto lender Genesis to liquidate approximately $1.3 billion worth of GBTC shares. Bloomberg ETF analyst Eric Balchunas previously suggested that the bleed would cease once GBTC reaches a 25% outflow of outstanding shares. The nine other spot Bitcoin ETFs have performed well amid the ongoing Bitcoin rally. On March 4, the volume for these ETFs reached $5.5 billion, making it the second-largest volume day. The BlackRock IBIT fund had a daily volume of about $2.4 billion, and its assets under management have surpassed $11 billion. Each of the new ETFs has also seen a volume increase of over 30% in six days. Fidelity recorded a record day for inflows on March 4, with $404.6 million. The Bitwise Bitcoin ETF (BITB) also experienced solid inflows, reaching $91 million, its highest since February 15.
Grayscale witnesses a 33% decline in GBTC Bitcoin holdings following its conversion.