On March 11, Grayscale Bitcoin Trust (GBTC) experienced a significant withdrawal, with $494 million worth of Bitcoin, equivalent to approximately 6,850 BTC, leaving the fund.

Initially labeled as a record outflow by BitMEX Research, it was later clarified that it was a historic high in terms of the Bitcoin price. Previous outflows from GBTC had surpassed $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. The Bitcoin stash, which was around 620,000 BTC before the transition, has decreased to 395,744 BTC, now valued at approximately $28.5 billion according to the latest prices.

Since becoming a spot ETF, GBTC has seen consistent outflows totaling $9.26 billion, as previously reported by Crypto.news. The new ETF structure allows investors to redeem shares for Bitcoin directly, a feature not available in its previous format. This, combined with GBTC’s higher fees compared to competitors like BlackRock’s IBIT and Fidelity’s FBTC, has contributed to the ongoing outflows.

Despite the withdrawals from Grayscale, 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 contrast to Grayscale’s outflows. VanEck’s spot Bitcoin ETF, HODL, experienced a record inflow of $119 million on March 11, following a temporary fee reduction. Additionally, Fidelity’s FBTC fund and Bitwise’s BITB reported inflows of $215 million and $50 million, respectively.

On the other hand, the Grayscale Solana Trust (GSOL) witnessed its secondary market price peak at $540 on March 8, with a premium rate of 873%, indicating a significant difference between the market price and the Net Asset Value (NAV). This spike has sparked discussions among investors, with some attributing it to potential institutional activities, particularly involving Pantera Capital and its dealings with staked Solana (SOL) assets. This situation has led to speculation about the reasons behind GSOL’s market performance and the possibility of undisclosed institutional information.

Read more: SEC delays spot Bitcoin ETF options request until April 4

Post Views: 6