Home / News / Crypto / Bitcoin / Grayscale BTC Holdings Down 50% Since ETF Launch, Outflows Continue Amid Pre-Halving Price Slump
3 min read

Grayscale BTC Holdings Down 50% Since ETF Launch, Outflows Continue Amid Pre-Halving Price Slump

Published April 18, 2024 11:10 AM
James Morales
Published April 18, 2024 11:10 AM

Key Takeaways

  • Grayscale’s Bitcoin holdings have shrunk by 50% since GBTC converted to an ETF.
  • Collectively, 11 Bitcoin ETFs have experienced net outflows each day this week.
  • With the Bitcoin halving just two days away, things could get worse before they get better.

The price of Bitcoin has fallen by around 15% since April 8, but more losses could be on the horizon as the short-term outlook remains bearish.

Still the largest known Bitcoin holder despite its stockpile of coins dwindling by 50% since converting to an ETF, Grayscale’s GBTC has been especially affected by the recent correction.  Meanwhile, anticipation is building ahead of the Bitcoin halving, set  to take place by April 20, even if the outlook for GBTC is not exactly rosy.  

GBTC Bitcoin Holdings Shrink

At the time Grayscale converted its Bitcoin Trust to an ETF earlier this year, GBTC held around 619,220 BTC. As of April 18, that number had been slashed in half to just 308,594 BTC.

With GBTC having witnessed net outflows every single day since its conversion, just $2 billion now separates it from the second-largest Bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT).

BlackRock Closes the Gap On Grayscale

Collectively, 11 US-listed spot Bitcoin ETFs have experienced net outflows of around $260 million so far this week as plummeting crypto prices prompt investors to pull their funds.

However, IBIT has managed to buck the wider trend, sustaining positive asset flows despite the difficult market conditions.

Bitcoin ETFs
Source: SoSoValue.

Although BlackRock only reports the dollar value of its holdings, a rough calculation based on the BTC price at the time markets closed on Wednesday suggests the firm currently holds around 271,000 Bitcoins.

However, with all other Bitcoin ETFs struggling amid ongoing bearishness, IBIT may soon experience outflows too.

Short-Term Bitcoin Price Fears

With the Bitcoin halving set to occur by Saturday, April 20, most medium-term forecasts predict the price of Bitcoin rising before the end of the year.

But before then, the current bear run must first run its course.

During previous halvings, price volatility around the time of the event has seen BTC decline in value by up to 20% from its pre-halving peak.

If that pattern plays out this time around, Bitcoin could keep sliding to as low as $56,000 before the market levels out.

In light of the decreased Bitcoin supply post-halving, analysts anticipate miners liquidating billions of dollars of hoarded BTC in the coming months to make up for the reduction in block rewards. This could delay any upward price movement for months.

Was this Article helpful? Yes No