Grayscale Bitcoin Trust ETF recorded four billion dollars in outflows last week

Grayscale Bitcoin Trust (GBTC) has experienced significant outflows since the SEC approved the conversion of the fund into an ETF. This has led to a substantial decline in Grayscale’s bitcoin holdings, and as it appears, the withdrawals are not slowing down.

According to data, the bitcoin holdings of GBTC have fallen by 15 percent in the past seven trading days.

A more detailed on-chain analysis conducted by Lookonchain revealed that Grayscale’s ETF has lost over 95,600 bitcoins since January 11, when it began trading as an ETF.

Some of the largest outflows were recorded on January 16, 18, 22, 23, and 24, with the fund recording withdrawals of 13,793 BTC, 14,301 BTC, 14,292 BTC, 15,986 BTC, and 13,179 BTC, respectively. The smallest outflow was recorded on the day the ETF began trading, with 2,083 BTC.

While GBTC’s bitcoin holdings are declining, those of the other eight ETFs are increasing. Since launch, the products have accumulated over 110,000 bitcoins. As GBTC offloaded about 13,179 bitcoins yesterday, the others added 8,251 bitcoins to their holdings, with Fidelity’s FBTC recording the largest increase of 4,023 bitcoins.

At the beginning of the year, GBTC’s initial holdings of approximately 619,162 bitcoins were valued at around 25 billion dollars. Given that the exchange-traded product has suffered nearly four billion dollars in outflows, there remains about 21 billion dollars in shares for liquidation.

Crypto market analysts have predicted that the price of bitcoin is likely to stagnate or fall until the liquidation worth 21 billion dollars is completed due to selling pressure from the process. Bitcoin has already fallen below 40,000 dollars, losing about 20 percent of its value since it surged above 49,000 dollars following the SEC’s approval of the ETFs.

However, Galaxy Digital founder Mike Novogratz opposed this view, insisting that investors will eventually shift towards alternative ETFs, which will lead to an increase in the price of bitcoin.