Grayscale’s Bitcoin Reserve is down more than 60% since the ETF’s debut

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Grayscale, the second largest crypto asset manager, has seen more than 60% of its Bitcoin holdings in the Grayscale Bitcoin Trust (GBTC) reduced since the fund was converted to an exchange-traded fund (ETF), according to data from at Coinglass.

In January, when Grayscale converted its Bitcoin Trust to an ETF, GBTC held nearly 620,000 Bitcoin (BTC). As of April 28, that number has dropped to about 227,400 BTC, valued at about $13.3 billion at current prices.

Ongoing outflows from Grayscale Bitcoin Trust continued in January after the ETF conversion, attributed to high management fees and competitive pressure from other funds such as BlackRock’s IBIT and Fidelity’s FBTC.

The fund, once the largest Bitcoin ETF, was overtaken by BlackRock’s iShares Bitcoin Trust, which took the top spot just five months after launching.

So far this week, investors have pumped more than $220 million into IBIT, data from Farside Investors shows.

After seeing net inflows almost daily since its debut, IBIT has maintained its dominance of the Bitcoin ETF market, holding approximately 358,000 BTC, valued at approximately $22 billion.

Observers have speculated when the Bitcoin bleeding of GBTC will end. Data from Farside Investors shows that GBTC outflows have started to decline since the beginning of this month. The ETF ended Wednesday’s trading session with a net outflow of $8 million, the smallest withdrawal since mid-July.

Grayscale’s Bitcoin Mini Trust Sees First Exits

As updated by Farside Investors, Grayscale’s Bitcoin Mini Trust (BTC), the low-cost version of GBTC, saw its first exits on August 28, with investors withdrawing more than $8 million.

Despite this, BTC has still attracted nearly $350 million in net capital since its launch in late July, closing the gap with competing funds managed by Invesco and Franklin Templeton.

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