- Grayscale’s GBTC fund experienced massive outflows on Monday.
- This marked the fund’s 36th consecutive day of outflows.
- With the development, Bitcoin holdings on the fund dropped significantly.
The largest crypto asset manager in the world, Grayscale, has seen a significant decrease in its Bitcoin holdings on GBTC since the conversion of the fund into an ETF.
Initially launched in 2013 as a private, open-ended trust for accredited investors, the Grayscale Bitcoin Trust (GBTC) got the SEC’s approval to operate as a spot Bitcoin ETF on January 10. The fund began trading with a Bitcoin balance sheet of 620,000 BTC the following day.
Grayscale’s GBTC Bitcoin Holdings Fall Significantly
According to BitMEX Research data shared on Tuesday, Grayscale’s GBTC witnessed its 36th day of straight outflows, with 5,450 BTC (about 368 million) leaving the fund on March 4.
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This brought the fund’s total outflows since converting into an ETF to a staggering 202,874 Bitcoin ($9.26 billion). With a 33% decline, the GBTC fund now holds 420,682 BTC, estimated at $28.8 billion at current market prices, information available on Grayscale’s website and portfolio shows.
Factors that likely contributed to the massive outflows include GBTC’s higher fee than some of the other spot Bitcoin ETFs, such as Fidelity’s FBTC and BalckRock’s IBIT. While the GBTC fund charges investors about 1.5%, the rest of the Bitcoin ETFs charge 0.2%-0.9%.
At the same time, the launch of Grayscale’s spot Bitcoin ETF allowed investors to access more features unavailable in the previous fund structure, including redeeming their shares for Bitcoin.
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