As Bitcoin Halving Approaches, GBTC Experienced Its Own Halving!

As Bitcoin Halving Approaches, GBTC Experienced Its Own Halving!
As Bitcoin Halving Approaches, GBTC Experienced Its Own Halving!

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One of the important agendas of this year was undoubtedly the SEC’s approval of spot Bitcoin ETFs. Following this important development, outflows from Grayscale’s GBTC fund also began. Gold bug Peter Schiff even claimed that these outflows would put serious pressure on BTC price. Recent reports show a 50% drop in GBTC’s BTC holdings since the launch of spot ETFs. This marks a dramatic decline in Grayscale’s market share with new players.

As Halving approaches, GBTC’s Bitcoin holdings halved!

As you have been following on, the US SEC approved spot Bitcoin ETFs earlier this year. This development is one of the most important events of this year for the crypto market. With the approval, giant companies started to enter the market. Grayscale, which converted its previous fund into a spot ETF, gradually lost its leading position with new competitors. The latest data shows that GBTC Bitcoin holdings have halved in the nearly three months since January 11.

Meanwhile, ETFs from new players BlackRock, Fidelity and others continue to buy BTC. Grayscale’s pre-existing Bitcoin Trust, by contrast, is selling. In the latest case, GBTC’s BTC holdings have fallen by nearly 50% to around 311,621. Meanwhile, it’s worth noting that GBTC charges a much higher fee than its competitors. For example, Grayscale charges 1.5% compared to the current 0.12% fee for BlackRock’s IBIT. This accelerates outflows from the fund.

GBTC Bitcoin assets. Source: CoinGlass.

Significant change in market share after the Spot Bitcoin ETF!

However, GBTC’s assets managed in US dollars fell less. This is due to the increase in the BTC price since the introduction of spot ETFs. In this context, GBTC’s assets fell 31% to $19.8 billion at current prices, down from $28.7 billion on January 11.

Meanwhile, there have also been significant changes in market share. BlackRock’s IBIT and Fidelity’s FBTC spot ETFs have increased their market share of Bitcoin assets. In the latest case, GBTC went from holding 100% of the market on launch day to just 37.3%. On the other hand, IBIT gained a 32.2% market share during this period. FBTC, another competitor, came in third place with 17.8%. The combined assets held by all US spot Bitcoin ETFs currently stand at around 840,000 BTC. That’s just over 4% of BTC’s total supply of 21 million.


Hong Kong approves first batch of spot BTC and ETH ETFs

The Hong Kong Securities and Futures Commission has approved spot BTC and ETH ETFs. Meanwhile, OSL announced plans to launch spot Bitcoin funds at the end of April. However, Bloomberg ETF analysts say that Hong Kong crypto ETFs will be smaller than Bitcoin ETFs in the US in terms of total asset management. Analysts note that while ETFs in Hong Kong may not see significant demand, they could be a big event for potential going forward. However, they also remind that ETFs in Hong Kong have a different structure.

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As Bitcoin Halving Approaches, GBTC Experienced Its Own Halving!