- Since the spot ETFs started on January 11, the amount of bitcoin held in Grayscale’s converted GBTC fund has decreased by 50%.
- In the same time frame, GBTC’s market share of Bitcoin holdings dropped to 37%, with the major winners being Fidelity’s FBTC and BlackRock’s IBIT.
Since the launch of the U.S. spot bitcoin exchange-traded funds on January 11, Grayscale’s holdings of GBTC bitcoin have decreased by half in around three months.
Rather than starting from scratch, Grayscale’s pre-existing Bitcoin Trust was transformed into an ETF and now holds about 619,220 BTC +2.43%, in contrast to the nine newly formed ETFs from BlackRock, Fidelity, and other investors. when the first Bitcoin spot trades took place.
In addition, GBTC charges a far higher cost than its rivals (1.5% as opposed to BlackRock’s IBIT’s current 0.12% fee, for example). As a result, according to the fund’s declarations as of Monday, its bitcoin holdings dropped by over 50% to about 311,621.
But since the spot ETFs were introduced, the price of bitcoin has increased concurrently, which has caused GBTC’s assets under management to decrease less in US dollars. At current rates, they are down 31% from a value of $28.7 billion on January 11 to $19.8 billion.
The two ETFs that have benefited most from bitcoin holdings in terms of market share are BlackRock’s IBIT and Fidelity’s FBTC spot. Based on The Block’s statistics dashboard, GBTC has dropped from nearly 100% of the market on launch day to barely 37.3% as of yesterday. Over time, IBIT has increased its stake to 32.2%, while FBTC has come in third with 17.8%.
Almost 840,000 BTC, or more than 4% of the 21 million bitcoins in circulation, are currently held by all of the U.S. spot bitcoin exchange-traded funds (ETFs).
In the ‘hesitant’ market, BlackRock and Grayscale are the final companies surviving.
BlackRock’s IBIT and Grayscale’s GBTC are the only U.S. spot bitcoin ETFs that have shown any movement for the past two trading days. Monday saw $73.4 million in inflows into IBIT, but it was dwarfed by $110.1 million in withdrawals from GBTC, resulting in a $36.7 million net outflow for the day.
After three of the five days last week were negative, there were $55.1 million in net outflows on Friday, for a total of $82.5 million that left the funds. Nonetheless, since the spot bitcoin ETFs were introduced, net inflows have totaled $12.5 billion.
Due to Friday’s first day of zero flow, FBTC’s 63-day inflow streak—the 16th longest in US ETF history—has come to an end. IBIT is still active, ranking joint 14th with a current 65-day inflow streak.
Investors appear to be cautious now that the upward price trend has stopped, according to a post made yesterday by James Butterfill, Head of Research at CoinShares.
First batch of spot Bitcoin and ether ETFs approved in Hong Kong
A number of spot bitcoin and ether exchange-traded funds (ETFs) operated by companies such as China Asset Management, Harvest Global, Bosera, and HashKey were approved by Hong Kong’s Securities and Futures Commission on Monday.
As long as negotiations with the regulator go well, OSL, which serves as both a sub-custodian and an infrastructure service provider for two fund managers, stated earlier today that the spot bitcoin funds might debut as early as late April.
With four days left until the halving, Bitcoin fell 10% in response to geopolitical concerns.
The price of Bitcoin right now is $63,459, according to The Block’s price page. Due to geopolitical unrest, the biggest cryptocurrency has decreased by 4% in the last day and 10% in the last week, although it is still 50% higher year to date.
The Bitcoin Halving Countdown page on The Block indicates that there are only four days left until Bitcoin’s halving event, which will see the miners’ block subsidy incentive slashed in half from 6.25 BTC to 3.125 BTC.
Based on the 10-minute average block creation period for Bitcoin, the anticipated countdown is based on a possible date of April 20.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
