On March 11, Grayscale Bitcoin Trust (GBTC) saw a substantial withdrawal, with $494 million worth of Bitcoin, approximately 6,850 BTC, leaving the fund.
BitMEX Research initially labeled this exodus a record outflow. However, they later clarified that it was a historic high in terms of the Bitcoin price. The assertion from BitMEX 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 broader 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’s Bitcoin stash was about 620,000 BTC, a figure that has since decreased to 395,744 BTC, now valued at approximately $28.5 billion according to the latest prices.
Since its transformation into a spot ETF, GBTC has witnessed consistent outflows, reaching a total of $9.26 billion, as previously reported by Crypto.news. The new structure of the ETF has enabled investors to redeem shares for Bitcoin directly, a feature not available in its previous format. This shift, coupled with GBTC’s higher fees compared to competitors such as BlackRock’s IBIT and Fidelity’s FBTC, has contributed to the ongoing outflows.
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Despite the substantial withdrawals, the net flow to all ETFs has been predominantly positive since February, with only two days of net negative flow. Competitors like BlackRock and Fidelity have seen increased inflows of Bitcoin, in stark contrast to Grayscale’s outflows. Notably, VanEck’s spot Bitcoin ETF, HODL, saw 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 contrary, the Grayscale Solana Trust (GSOL) saw its secondary market price reach a peak of $540 on March 8, with a premium rate of 873%, indicating a significant discrepancy 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, notably involving Pantera Capital and its dealings with staked Solana (SOL) assets. This situation has led to speculation about the reasons behind the GSOL’s market performance and the possibility of undisclosed institutional information.
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