Grayscale Bitcoin Trust Faces Depletion as Outflows Accelerate

Grayscale's Bitcoin Trust (GBTC) is forecast to deplete its Bitcoin reserves within 96 days due to consistent outflows averaging 25,900 BTC per week.

GBTC has seen its Bitcoin balance drop by 266,470 BTC since converting to a spot Bitcoin ETF in January 2023.

The outflows are attributed to profit-taking investors, arbitragers exiting, and the high 1.5% fee structure of GBTC compared to competitors.

Grayscale is exploring solutions like introducing a lower-cost mini fund and reducing its fees to counteract the outflows.

GBTC started 2023 with 618,280 BTC but now holds just 356,440 BTC, leading analysts to forecast just 14 more weeks before reserves are depleted.