Grayscale Reduces BTC Holdings While Competitors Bolster Reserves

Grayscale Reduces BTC Holdings While Competitors Bolster Reserves

On Monday, the transaction volume of the Grayscale Bitcoin Trust (GBTC) reached a total value of $672 million.

However, it sold off some of its BTC holdings, which were around 3,426.99 tokens, which had a value of $147 million.

After the trading activity on Tuesday, Grayscale sold an additional 2,565.39 tokens, which had a value of $110 million.

Meanwhile, the IBIT ETF of BlackRock and FBTC of Fidelity have acquired an additional 3,235.87 and 2,732.75 BTC tokens.

The decline

Since its conversion into a spot Bitcoin exchange-traded fund (ETF), Grayscale Bitcoin Trust (GBTC) has been reducing its Bitcoin holdings.

The current balance of the trust is around 472,345.05 BTC tokens, which had an estimated value of $20.34 billion.

Since January 12th, GBTC has seen its holdings decline by a total of 144,734.94 BTC tokens, which had an approximate value of $6.23 billion.

Data from Bitmex shows that the day prior i.e. on January 11th, GBTC had offloaded around 147,792 BTC tokens, which were valued at $6.37 billion.

This trend is the opposite of what has been seen in the company’s competitors, as they appear to be bolstering their BTC holdings.

The competitors

BlackRock’s ETF, IBIT, has been steadily climbing up the ranks, as it accumulated an additional 3,235.87 BTC tokens after Monday.

This saw its total holdings climb to about 75,702.51 tokens, which were valued at $3.23 billion. On Tuesday, the BTC reserves of Fidelity’s FBTC stood at 62,787.62 tokens.

These were valued at a total of $2.66 billion. Likewise, the 21shares ETF of Ark Invest also upped its holdings from 15,890 tokens to 16,415.

There was also growth recorded in Bitwise’s BITB, as its reserves climbed on Tuesday to 15,320.82 BTC tokens from 15,053.66.

BTCO, which is the Invesco Galaxy Fund, kept the same count of 7,081 BTC tokens that it had in its possession two days earlier.

After Tuesday’s transactions, there was a bump in VanEck’s HODL ETF, as they climbed to 3,054.99 BTC tokens from 2,998.48.

Stable holdings

Some of the Bitcoin ETFs continued to hold onto their existing tokens and did not experience a rise in the number.

This included Valkyrie’s BRRR which had a total of 2,649.46 BTC tokens. Similarly, the Franklin Templeton-managed EZBC had a total of 1,479 BTC tokens with no changes in the number.

However, reserves of Wisdom Tree did record a small increase, as they climbed to 313 BTC to 276 BTC. Collectively, the nine ETFs had a total of 184,803.4 BTC tokens that were valued at $7.96 billion.

This total does not include the holdings of Grayscale. James Seyffart, a Bloomberg ETF analyst, shared some observations about the BTC holdings.

He highlighted that GBTC outflows were finally tapering off, but it was also worth noting that inflows to other products were also declining.

Observers who were keeping an eye on Grayscale’s outflows also noticed that they were shrinking, which reduced some of the volatility in the market.

The continued sell-off had seen the price of Bitcoin take a significant hit, but things are now slowing down.