Bitcoin Trust witnesses $494 million withdrawal, contributing to ongoing Grayscale outflows.
On March 11, the Grayscale Bitcoin Trust (GBTC) experienced a notable outflow, as approximately 6,850 BTC worth $494 million left the fund.
Initially, BitMEX Research labeled this movement as a record withdrawal. However, they later clarified that it was a historic high in terms of the Bitcoin price. This assertion faced scrutiny, as GBTC had previously seen outflows surpassing $500 million during five days in January and again on February 29.
These figures are part of a larger trend of diminishing holdings for Grayscale, which have declined by 36% since the trust transitioned into a spot Exchange-Traded Fund (ETF) in January. Before this change, Grayscale held around 620,000 BTC, a number that has since decreased to 395,744 BTC, now valued at approximately $28.5 billion based on the latest prices.
Since becoming an ETF, GBTC has consistently experienced outflows, totaling $9.26 billion, as previously reported by Crypto.news. The new structure of the ETF allows investors to redeem shares for Bitcoin directly, a feature that was not available in its previous format. This shift, combined with GBTC’s higher fees compared to competitors like BlackRock’s IBIT and Fidelity’s FBTC, has contributed to the ongoing outflows.
Despite the significant withdrawals, the overall flow to all ETFs has been mostly positive since February, with only two days of net negative flow. Competitors like BlackRock and Fidelity have seen increased inflows of Bitcoin, in contrast to Grayscale’s outflows. Notably, VanEck’s spot Bitcoin ETF, HODL, experienced a record inflow of $119 million on March 11, following the announcement of a temporary fee reduction. Additionally, Fidelity’s FBTC fund and Bitwise’s BITB reported inflows of $215 million and $50 million, respectively.
On the other hand, the Grayscale Solana Trust (GSOL) saw its secondary market price reach a peak of $540 on March 8, with a premium rate of 873%. This indicates a significant difference between the market price and the Net Asset Value (NAV). This unusual spike has sparked discussions among investors, with some attributing it to potential institutional activities, particularly involving Pantera Capital and its dealings with staked Solana (SOL) assets. This situation has led to speculation about the reasons behind GSOL’s market performance and the possibility of undisclosed institutional information.
