Since January 12, 50,100 BTC worth $2 billion have been withdrawn from the GBTC fund. What is the reason?
GBTC, recognized as a spot Bitcoin ETF, maintains a significant reserve of Bitcoin (BTC). Since converting to a public ETF, the trust has experienced significant outflows.
On Thursday, GBTC's holdings fell by 10,823.86 BTC, and after Friday's trading sessions, the fund recorded a further decline of 14,300.52 BTC. In total, since January 12, 2024, there has been an outflow of 50,106.59 BTC from the trust’s reserves, worth more than $2 billion.
Several factors are contributing to the intense sales of GBTC. GBTC shareholders were initially constrained in their actions as shares, initially trading at a premium to their net asset value, suddenly shifted to a discount. The discount appeared in February 2021 and remained almost until this year.
Long-term investors were likely biding their time until the opportunity to sell presented itself. Additionally, investors who assumed the discount would narrow and bought GBTC at a lower price can now sell their shares for a substantial profit.
