The world’s largest crypto asset manager, Grayscale, has now seen nearly 33% of its Bitcoin holdings in its Grayscale Bitcoin Trust (GBTC) removed since it converted to an exchange-traded fund (ETF) in mid-January.
On March 4, GBTC saw its 36th straight day of outflows, with 5,450 Bitcoin (BTC) worth around $368 million leaving the trust, bringing total outflows since its conversion to $9.26 billion, according to BitMEX Research.
Before it converted its fund to an ETF, Grayscale held around 620,000 BTC, according to Coinglass.
The launch of Grayscale’s spot Bitcoin ETF allowed investors to redeem their shares for Bitcoin. It also hasn’t helped that GBTC has higher fees than other ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund.
GBTC now holds 420,682 BTC worth an estimated $28.8 billion at current prices, according to its website and portfolio.
Market observers have continued to speculate when GBTC may see the end of its “Bitcoin bleed.”
GBTC outflows slowed in late January and February, leading some analysts to suggest that they could be coming to an end. However, in mid-February, bankruptcy courts allowed crypto lender Genesis to liquidate roughly $1.3 billion worth of GBTC shares as part of efforts to reimburse investors.
Bloomberg ETF analyst Eric Balchunas previously speculated the bleeding would stop once GBTC bleeds 25% of its outstanding shares. However, a self-selected poll on X had most respondents speculating it would happen in the 35–50% range.
Meanwhile, the nine other spot Bitcoin ETFs have continued to exceed expectations amid a sustained Bitcoin rally.
Data shows that March 4 was the second-largest volume day for the 10 spot Bitcoin ETFs with around $5.5 billion, confirmed Balchunas.
BlackRock’s IBIT had around $2.4 billion in daily volume, and its assets under management figure has now exceeded $11 billion.
Each of the new ETFs is also up over 30% in volume in six days, “which will prob help keep the flow ball rolling,” added Balchunas.
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March 4 was also a record day for Fidelity inflows, with $404.6 million, according to preliminary data from Farside Investors. “Fidelity has more than offset the GBTC outflow on its own,” it stated.
The Bitwise Bitcoin ETF also had a solid day with $91 million of inflows, its highest since Feb. 15.