Spot bitcoin exchange-traded funds (ETFs) have taken center stage over the last few months as BlackRock’s bitcoin ETF (IBIT) continues to hit new ETF industry records. As BlackRock’s IBIT reaches new heights, crypto investment firm Grayscale’s GBTC product is struggling with redemptions and could run out of bitcoin to sell in as early as 14 weeks. 

Based on the current rate of redemptions, the Grayscale Bitcoin Trust (GBTC) could run out of bitcoin to sell in just 96 days, according to an analysis from blockchain analytics firm Arkham Intelligence. Those calculations were based on the 266,470 BTC that Grayscale transferred out of their wallets for redemptions since the closed-end fund was first converted into an ETF on Jan. 11.

The firm also noted that GBTC held 356,440 BTC in their wallets as of March 23, compared to the 618,280 BTC back in January.

Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) boasts an average daily inflow figure of 4,120 BTC every day, worth a little over $274 million at current prices. 

As things stand, some market participants have predicted that IBIT will soon surpass GBTC’s total bitcoin holdings.

Still, another theory is that the worst could be over for GBTC. Last week, Bloomberg ETF analyst Eric Balchunas noted that the recent uptick in outflows was likely related to bankruptcies, based on the size and consistency.

March 25, 2024 at 04:23am ET: This story has been updated to correct the GBTC figure cited from Arkham from 277,470 BTC to 266,470 BTC. Changes have also been to the introduction and story description for clarity reasons.