|

Grayscale outflows reach $2.8 billion even as GBTC discount contracts to less than 0.3%

  • Grayscale Bitcoin Trust (GBTC) is now less than 0.3% away from noting premium for the first time in three years.
  • Per Bitmex Research, the outflows in GBTC extended to $590 million on Day 6 of trading, bringing the total to $2.8 billion.
  • At this rate, the asset manager would note an outflow of all its holdings within the next two months. 

This is impractical; thus, outflows will slow down in three to four weeks but still result in losses.

Grayscale, the leader of all spot Bitcoin ETF applicants in terms of assets held, is now losing its assets rapidly as investors are moving to sell for profit. This, however, seems to have no impact on the value of Grayscale Bitcoin Trust (GBTC), which is improving day by day thanks to the large transaction volumes representing demand in the market.

Grayscale flows stun the market

With assets worth nearly $23 billion under the belt, Grayscale has a lot to lose, metaphorically and literally. And given the outflows it is witnessing, it may actually lose a lot more quickly. Since trading began, Grayscale has largely been noting outflows, reaching the $1 billion mark on day three and the $2 billion mark by day 5.

As of today, six days later, Grayscale has recorded total outflows worth $2.8 billion. The $590 million worth of assets leaving the ETF on Friday nudged this figure closer to the $3 billion mark, which Grayscale will likely achieve by Monday.

Spot Bitcoin ETF flows | BitMEX Research

Spot Bitcoin ETF flows | BitMEX Research

At this rate, Grayscale would witness all its holdings flow out within the next two months. Although this is rather impractical to happen, it does signify the intensity of outflows and the impact they could have on GBTC.

But surprising the market, the discount that GBTC has been observing is contracting every passing day. At the time of writing, the discount to Net Asset Value (NAV) is at less than 0.3%, putting it close to moving above the zero line. When this happens, GBTC will be witnessing a premium on NAV for the first time in three years.

Even though the market is still largely consumed by the ETF approval hype, it does not put Bitcoin out of danger of noting further declines, and that might be the only factor impacting the potential of GBTC noting premium again.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

World Liberty Financial recovers as community votes to unlock treasury funds for USD1 adoption

World Liberty Financial recovers over 3% on Friday, holding ground at a key support trendline. Community begins voting to unlock roughly 5% WLFI treasury funds to incentivize USD1 stablecoin adoption.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.