Grayscale’s GBTC Bitcoin Holdings: A $6 Billion Exodus in 22 Days

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According to data, Grayscale’s Bitcoin Trust, GBTC, recently released another batch of bitcoin valued at $184.19 million. GBTC’s holdings decreased from 482,592.18 bitcoin to the current 478,337.43 bitcoin in just one day, marking a reduction of 4,254.75 coins. Since Jan. 12, 2024, GBTC has offloaded a total of 138,742.56 bitcoin, valued at slightly over $6 billion based on prevailing exchange rates.

Grayscale’s GBTC Sheds Over 22% of Bitcoin Cache Since Public Debut

In the last 22 days, Grayscale’s Bitcoin Trust has divested a significant 138,742.56 BTC. If we distribute this over the entire period evenly, it averages out to approximately 6,308.34 BTC per day. It’s worth noting that GBTC has functioned as a spot bitcoin exchange-traded fund (ETF) for a mere 15 trading days, commencing its trading journey on Jan. 11, 2024.

Grayscale’s fund has been a dominant force in trading volume during 14 out of the 15 trading sessions since its transformation into a publicly traded ETF. On the day after its initial trading debut on Jan. 12, 2024, GBTC held 617,079.99 BTC. Since then, its reserves have dwindled by 22.48%. Onchain metrics provided by Arkham Intelligence reveal a substantial outflow, with GBTC’s transfers consistently staying below the 1,000 BTC per transaction mark.

In early September 2023, Arkham disclosed that GBTC’s holdings were distributed across more than 1,750 distinct addresses, each holding no more than 1,000 BTC. Grayscale had held these coins for an extended period, exemplified by the wallet “1D2Z8,” which initiated a transaction of 868.77 BTC to Coinbase Prime and was first established on Jan. 12, 2021. Notably, some GBTC wallets have experienced balance changes as recent as two months ago, as illustrated by “1BMYG,” created on Nov. 30, 2023, which executed a transfer of 899.99 BTC just yesterday.

Moreover, these long-standing coins, found within a wallet established on Dec. 22, 2020, and left dormant for an extended period, have recently sprung to life. Their purpose? A transfer to a wallet created just two days ago, all in preparation for their ultimate journey to Coinbase. The timeline for redemptions from Grayscale’s Bitcoin Trust remains uncertain, primarily because of its prolonged two-year stint trading below its net asset value (NAV).

This extended period of trading at a discount provided an opening for a potential backlog of savvy traders poised to seize arbitrage opportunities, seeking to profit from the divergence between the share price and the value of bitcoin. This situation implies that redemptions could persist as long as these profitable arbitrage opportunities continue to exist, driven by ever-shifting market dynamics and investor strategies aimed at capitalizing on historical price disparities.

What do you think about the GBTC outflow over the past 22 days? Share your thoughts and opinions about this subject in the comments section below.

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