The excitement of the Bitcoin halving event is amazing with Grayscale Investments, a leading investor in the cryptocurrency world. Just days before the highly anticipated halving, Grayscale has seen a staggering 50% decrease in their spot BTC ETFs.
The highly anticipated Grayscale Bitcoin Trust ETF has made a major move, reducing its BTC holdings by a whopping 50%. That’s right, from 619,220 BTC on its first day of trading on January 11, the spot Bitcoin ETF now holds 309,871 BTC on its 66th day.
This marks a significant decrease from its initial debut, but don’t let that fool you. With a current value of $19.7 billion, this ETF is still a force to be reckoned with in the world of cryptocurrency.
The highly anticipated GBTC “halving” took place a mere 48 hours before the much-awaited Bitcoin halving event. This monumental occasion slashed the mining reward by a whopping 50%, reducing it from 6.25 BTC to 3.125 BTC.
However, it wasn’t just a simple cut in rewards that had the crypto world buzzing. The GBTC also experienced a significant sell-off, sending shockwaves through the Bitcoin market and causing a stir in the community.
Experts have connected this trend to the exorbitant trading fees associated with GBTC, which currently holds the title for the highest fees among the top 10 Bitcoin ETFs in the US, starting at a whopping 1.5% upon its launch.
With competition heating up, other Bitcoin ETFs have been forced to lower their fees to stay in the game, with trading commissions now ranging from 0.2% to 0.4%. Uncover the impact of these changes and stay ahead of the game in the ever-evolving world of cryptocurrency.
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BlackRock’s iShares Bitcoin Trust (IBIT), a fierce competitor to GBTC. With a modest fee of 0.25% and an enticing 0.12% discount for the first $5 billion in traded assets, IBIT has hit the ground running.
And it’s already making waves, with its spot Bitcoin ETF experiencing a staggering 10,000% increase in holdings since its debut, now boasting a whopping 272,548 BTC. But the real question is, can IBIT catch up to GBTC’s impressive 13% lead in holdings?
Despite its impressive expansion, IBIT has struggled to keep up with the outpouring of BTC from GBTC, totaling a whopping 309,349 BTC. And while eight other issuers have also entered the market, together they have only managed to accumulate 224,552 BTC since their launch. As of yesterday, April 16, these ten spot Bitcoin ETFs boast a staggering 862,162 BTC, valued at a jaw-dropping $51.7 billion.