Since the listing of the Bitcoin spot ETF, the IBIT ETF under BlackRock has surpassed GBTC, a subsidiary of Grayscale, for the second time, while the selling pressure on GBTC has significantly decreased.
(Background information:
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(Background supplement:
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After approving 11 Bitcoin spot ETFs last month, the trading volume and selling pressure of GBTC under Grayscale continue to attract market attention. According to data released by Bloomberg analyst James Seyffart, the daily trading volume of Bitcoin spot ETF was $1 billion yesterday (7th).
The IBIT ETF under BlackRock became the biggest winner, with a trading volume of up to $340 million, while GBTC ranked second with a trading volume of $296 million. This is the second time in the 19 trading days since its launch that GBTC has been surpassed by IBIT.
Bitcoin spot ETF trading volume from various institutions yesterday | Source: Bloomberg
On the other hand, as of the closing of the U.S. stock market on February 7th, the total trading volume of all Bitcoin spot ETFs since their listing has reached an astonishing $32.7216 billion. Although the recent trading volume has significantly decreased compared to the initial listing, analyst James Seyffart also stated that “breaking $1 billion in daily trading volume is not a big deal.”
Bitcoin spot ETF trading volume continues to decline | Source: THE BLOCK
Continuous decrease in GBTC selling pressure
Since the launch of the Bitcoin spot ETF, the Bitcoin price has experienced a continuous decline, even falling below $39,000 at one point, and the continuous outflow of funds from GBTC is considered the main reason for the decline. GBTC not only puts pressure on the price of Bitcoin but also affects investor sentiment towards the short-term outlook for Bitcoin.
The latest official data shows that as of February 7th, the amount of Bitcoin held by GBTC has decreased. Specifically, the total number of Bitcoin currently held by GBTC is 470,637.4128, a decrease of approximately 1,707.64 from the previous trading day. Although GBTC’s asset management scale is still as high as $20.2 billion, if we observe the daily outflow, the selling pressure on GBTC has significantly decreased.
Data shows that the daily outflow of GBTC initially reached $400-600 million, and in this week, it has only decreased to around $200-300 million. This also means that if this trend continues, the final balanced holding amount of Bitcoin in GBTC may be higher than market expectations.
Daily outflow of GBTC | Source: THE BLOCK
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