Recent data analysis from Glassnode reveals a substantial decrease in the balance of the Grayscale Bitcoin Trust ETF (GBTC), now estimated at around 553,000 Bitcoin, which is roughly 12% down from its high of 630,000 Bitcoin.
A key contributing factor to this decline appears to be the increasing outflows, which have been estimated at around $3.5 billion over its seven most recent trading days. These outflows are on the rise while the discount to the Net Asset Value (NAV) continues to close, currently roughly -0.11%, according to Y Charts. As this discount continues to narrow, the market may witness a further surge in GBTC selling.
Similarly, the digital asset exchange FTX reports significant sales nearing $1 billion, resulting from FTX’s bankruptcy estate offloading approximately 22 million shares, according to CoinDesk. Some of the outflows from GBTC have been redeemed into spot Bitcoin ETFs, roughly a third, according to Bloomberg analysts. However, it is noteworthy that about a third of the GBTC outflows ended up in USD, not in ETF vehicles, due to the FTX bankruptcy.