Grayscale Bitcoin Trust Stash Dips by 10,800 BTC in One Day Amid High GBTC Trading Activity

The Grayscale Bitcoin Trust, commonly referred to as GBTC, has recently divested a considerable quantity of bitcoin. Records indicate that a total of 10,823.86 bitcoin, valued at approximately $447.40 million, was withdrawn from the holdings of GBTC in the span from Thursday to Friday morning.

GBTC’s Bitcoin Cache Continues to Witness Outflows

GBTC is experiencing notable outflows and volume, particularly on Thursday, Jan. 18, 2024, when the fund recorded a significant trade volume of $2.11 billion. Up to this point, the Grayscale Bitcoin Trust has emerged as the frontrunner in trade volume among all the newly launched spot bitcoin exchange-traded funds (ETFs).

Nevertheless, this surge in volume has been accompanied by a marked increase in bitcoin outflows, primarily due to GBTC investors realizing their profits. Just yesterday, on Jan. 18, Bitcoin.com News covered the story that GBTC held a substantial 592,097.78 BTC. However, as of today, there has been a 1.82% decrease since that report. Current archived records, dated Jan. 19, 2024, reveal that GBTC’s holdings have diminished to 581,273.92 BTC.

This reduction of 1.82% equates to a loss of 10,823.86 BTC, valued at $447.4 million, based on the prevailing BTC exchange rates. According to GBTC’s website, the total value of assets under management (AUM) currently stands at $23.70 billion. The outflows from GBTC are occurring simultaneously with the inflows into spot bitcoin ETFs managed by Blackrock and Fidelity. As of Jan. 18, 2024, Blackrock’s IBIT possesses 28,622 BTC. Meanwhile, the Fidelity Wise Origin ETF (FBTC) is holding 20,507 BTC, and the Bitwise ETF BITB, as of the same date, manages approximately 8,309 BTC.

The prevailing question on everyone’s mind centers around the duration of GBTC’s substantial outflows and the impact these large bitcoin movements are having on the market. Despite these outflows, Grayscale remains the most prominent BTC holder, with an ownership of 582,134 BTC as reported by Arkham Intelligence’s platform on Jan. 19. This figure encompasses the bitcoin held by Grayscale for its Digital Large Cap Fund, which also experienced a reduction of 395.9 BTC on Jan. 16, 2024.

What do you think about GBTC’s bitcoin stash depleting since the ETFs started trading last week? Share your thoughts and opinions about this subject in the comments section below.