GrayScale, a cryptocurrency asset management company, has been experiencing continuous outflows since its successful transformation from a Bitcoin spot ETF. The total outflows to date have exceeded $11 billion, causing its market share among the 10 Bitcoin spot ETFs to drop sharply from 99.5% on the first day of listing to 48.9% currently.
According to data from Dune Analytics, on January 11th, when the 10 Bitcoin spot ETFs were listed, GBTC had a market share of 99.5%. However, as of March 12th, the assets under management by GBTC had dropped to $28.5 billion, accounting for only 48.9% of the total assets under management of the 10 Bitcoin spot ETFs, which amounted to $56.7 billion.
Before the SEC approved the Bitcoin spot ETF, GrayScale had been one of the largest holders of Bitcoin. As the GBTC is a trust fund and cannot be redeemed, GrayScale’s Bitcoin holdings had continuously increased. However, since the conversion of GBTC into a Bitcoin spot ETF was approved, the Bitcoin holdings of GrayScale have started to decline rapidly due to the redeemable nature of the ETF.
Last week, the average daily outflow of funds from GBTC reached $329 million. In the first month of the listing of the spot ETF, GBTC had the largest outflow of funds, with approximately $7 billion flowing out within a month. However, the outflows started to slow down at the end of January, leading some analysts to believe that the outflow situation may soon come to an end.
However, in mid-February, the outflow of funds from GBTC accelerated again after the court approved the sale of GBTC shares worth approximately $1.3 billion by Genesis, a cryptocurrency lending institution under bankruptcy proceedings at the time. So far, the total outflows from GBTC have exceeded $11 billion, leaving the assets under management at $27.68 billion.
Despite the continuous outflows from GBTC, other spot ETFs have been experiencing continuous inflows of funds. According to data from SoSoValue, the total net inflow of funds from all Bitcoin spot ETFs since their listing amounts to $11.14 billion. On the 12th, the daily net inflow reached $1.05 billion, setting a new record for daily inflows.
Since its listing, BlackRock’s “iShares Bitcoin Trust (IBIT)” and Fidelity’s “Wise Origin Bitcoin Fund (FBTC)” have had the highest net inflows, creating a total of $16.9 billion in inflows.
According to K33 Research data, BlackRock’s IBIT currently holds approximately 203,756 bitcoins and saw a net inflow of 6,977 bitcoins yesterday, with a total holding value of approximately $14.3 billion.
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