GrayScale, a cryptocurrency asset management company, has been experiencing continuous outflows since its successful transformation from a Bitcoin spot ETF. The total outflows have exceeded $11 billion, causing its market share among the 10 Bitcoin spot ETFs to drop from 99.5% on its first day of listing to the current 48.9%.
According to data from Dune Analytics, on January 11th, when the 10 Bitcoin spot ETFs were listed, GBTC’s market share reached 99.5%. However, as of March 12th, GBTC’s assets under management have dropped to $28.5 billion, accounting for only 48.9% of the total assets under management of the 10 Bitcoin spot ETFs, which is $56.7 billion.
Before the SEC approved the Bitcoin spot ETFs, GrayScale was one of the largest holders of Bitcoin. As the GBTC is a trust fund and cannot be redeemed, GrayScale’s Bitcoin holdings have only increased and never decreased. However, since the conversion of GBTC to a Bitcoin spot ETF was approved, the Bitcoin holdings of GrayScale have been rapidly declining as the ETF allows for redemption.
Last week, GBTC had an average daily outflow of $329 million, according to Cointelegraph. In the first month of the spot ETF’s listing, the outflows from GBTC were the largest, with around $7 billion flowing out within a month. However, the outflows started to slow down at the end of January, leading some analysts to believe that the outflow situation may soon come to an end.
However, in mid-February, after the court approved the sale of GBTC shares worth approximately $1.3 billion by Genesis, a cryptocurrency lending institution in bankruptcy, the outflows from GBTC accelerated again. So far, the total outflows from GBTC have exceeded $11 billion, and its assets under management have been reduced to $27.68 billion.
Despite the continuous outflows from GBTC, other spot ETFs have been experiencing continuous inflows. According to data from SoSoValue, the total net inflows of all Bitcoin spot ETFs since their listing amount to $11.14 billion. On the 12th, the daily net inflow reached $1.05 billion, setting a new record for daily inflows.
Since their listing, BlackRock’s “iShares Bitcoin Trust (IBIT)” and Fidelity’s “Wise Origin Bitcoin Fund (FBTC)” have seen the highest net inflows, totaling $16.9 billion. According to K33 Research data, BlackRock’s IBIT currently holds approximately 203,756 bitcoins, with an additional 6,977 bitcoins added yesterday, bringing the total value of its holdings to approximately $14.3 billion.