Recent developments in the crypto investment landscape, particularly the approval of spot bitcoin exchange-traded funds (ETFs), have led to significant shifts in holdings across various funds. Notably, Grayscale’s Bitcoin Trust (GBTC) has experienced a substantial reduction in its Bitcoin holdings, while ETFs like those from Blackrock and Fidelity have seen growth in their Bitcoin assets.
Decline in Grayscale’s Bitcoin Holdings
Bitcoin.com provided an in-depth article on the recent Bitcoin holdings. As per the latest data from Grayscale’s GBTC web portal, as of January 17, 2024, the fund’s bitcoin holdings have decreased to 605,890.87 BTC, valued at $25.84 billion. This marks a reduction of 11,189 BTC since January 13, when the holdings stood at 617,079 BTC. The withdrawal, amounting to approximately $477 million, follows similar outflows observed in the first two trading days of January 2024.
Growth in Holdings of New Bitcoin ETFs
In contrast, new entrants in the bitcoin ETF space have reported increases in their holdings:
- Blackrock’s Ishares Bitcoin Trust (IBIT): Holds 16,361 BTC, valued at around $707.42 million.
- Fidelity Wise Origin Bitcoin Fund (FBTC): Maintains a holding of 12,112 BTC, approximately $516 million in value.
- Bitwise Bitcoin ETF (BTCB): Remains steady with 5,550 BTC as of the last update.
- ARK 21shares Bitcoin ETF (ARKB): Increased its holdings from 1,625 BTC to 2,535 BTC.
- Vaneck’s HODL fund: Saw a rise from 1,640.92 BTC to 1,867 BTC.
- Galaxy Invesco ETF (BTCO): Currently holds 1,131 BTC, around $48 million in value.
- Franklin Templeton: Holdings unchanged at 1,131 BTC.
- Valkyrie BRRR fund: Continues holding 1,103 BTC.
- Wisdomtree’s BTCW: Has 74 BTC, worth approximately $3.1 million.
Collectively, these ETFs possess about 40,751 BTC, accounting for 6.725% of Grayscale’s GBTC holdings.
Market Analysis and Observations
Bloomberg’s senior ETF analyst Eric Balchunas commented on the notable outflow from GBTC, highlighting the significant impact of the new spot bitcoin ETFs on the market. Balchunas pointed out the reduction in the percentage discount of GBTC, suggesting a decrease in pressure within the ETF from investors seeking to exit.
The Take Away
The approval of spot bitcoin ETFs, led by financial giants like Blackrock and Fidelity, has introduced a new dynamic to the cryptocurrency investment market. This shift has been exemplified by the decreasing holdings of Grayscale’s GBTC and the simultaneous growth of these new ETFs. As the crypto market continues to evolve, the impact of these changes on investors and the broader financial ecosystem will be critical to monitor.
