Grayscale, a major player in crypto asset management, has witnessed a significant drop in its Bitcoin holdings.
Since converting its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF) in January, the fund’s Bitcoin reserves have plunged by more than 60%, according to Coinglass data.
Initially, GBTC held nearly 620,000 Bitcoin, but by April 28, that figure dwindled to around 227,400 BTC, valued at approximately $13.3 billion.
This decline is partly due to ongoing investor outflows following the ETF conversion, as high fees and stiff competition from rivals like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC have made alternatives more appealing.
In fact, IBIT has quickly risen to dominance, overtaking GBTC and attracting substantial investments, with over $220 million added just this week, Farside Investors reports. Currently, IBIT holds around 358,000 BTC, valued at $22 billion.
Although GBTC outflows have slowed, concerns remain about when this trend will stabilize.
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