Bitcoin’s value dropped below $39,000 for the first time in almost two months as Grayscale’s Bitcoin Trust (GBTC) continues to bleed. Since its conversion to a spot Bitcoin exchange-traded fund (ETF) on January 11, GBTC has experienced significant outflows, which as of this writing is over $3.4 billion.
On January 23, GBTC saw more outflows amounting to $515 million, causing a 13% reduction in its outstanding shares.
The bankruptcy estate of the failed crypto exchange FTX is being blamed for the recent outflows, having sold most of its 22.3 million GBTC shares over three trading days, with approximately 8 million shares still to be sold.
Grayscale’s website reports 600.5 million outstanding shares, while CC15Capital data shows 82,525 Bitcoin leaving GBTC since January 10.
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