Bitcoin ETF

Grayscale Bitcoin Trust

Spot

In a rather shocking development, <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-etf-sees-60-drop-outflows/" rel="nofollow noopener" target="_blank">Grayscale Bitcoin Trust (GBTC)</a> has recorded its first-ever inflow after witnessing <a href="https://bitcoinist.com/bitcoin-etf-outflows-equilibrium-grayscale/">significant daily outflows</a> since its launch.&nbsp; 
<h2 id="grayscale-bitcoin-etf-records-over-60-million-in-inflows">Grayscale Bitcoin ETF Records Over $60 Million In Inflows</h2> 
Grayscale’s Spot Bitcoin ETF has finally broken its 82-day streak of outflows since its launch on January 11, 2024. GBTC saw its first day of inflows on May 3, after witnessing approximately $17.46 billion in outflows.&nbsp; 
According to <a href="https://farside.co.uk/?p=1321" rel="nofollow noopener" target="_blank">data</a> from Farside, an investment management firm, Grayscale’s Spot Bitcoin ETF had amassed inflows of about $63 million, alongside other Bitcoin ETFs like <a href="https://bitcoinist.com/blackrock-spot-bitcoin-etf-inflows/">BlackRock’s iShares Bitcoin Trust (IBIT)</a> which had inflows of $12.7 million.&nbsp; 
The total inflows recorded in that single day amounted to approximately $378.3 million, with <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-begins-rally-as-franklin-templeton-joins/" rel="nofollow noopener" target="_blank">Franklin Templeton’s Spot Bitcoin ETF</a>, EZBC, leading the pack with the highest inflows of $102.6 million.&nbsp; 
Expressing disbelief at Grayscale’s turnaround, Bloomberg senior analyst and ETF expert, Eric Balchunas <a href="https://x.com/ericbalchunas/status/1786517760937218354?s=46" rel="nofollow" target="_blank">remarked</a> that he had to make thorough verifications to confirm the unexpected development.&nbsp; 
Moreover, the surprising influx comes after a recent occurrence which saw 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, collectively <a href="https://bitcoinist.com/bitcoin-spot-etfs-record-outflow/">recording enormous outflows worth over $563.7 million</a> in a single day. These outflows were possibly triggered by the <a href="https://bitcoinist.com/crypto-fomc-meeting-most-important-in-years/">Federal Reserve’s (FED)</a> decision to keep rates unaltered, resulting in a broader downturn in the crypto market.&nbsp; 
BTC had also experienced significant declines around the same time, however, currently the cryptocurrency is up by 6.36% in the past 24 hours, jumping above $60,000 support levels to trade at $63,175, according to CoinMarketCap.&nbsp; 
<h2 id="factors-behind-gbtc-s-massive-outflows">Factors Behind GBTC’s Massive Outflows</h2> 
Grayscale saw its first recorded inflow after experiencing<a href="https://bitcoinist.com/back-to-back-negative-bitcoin-etf-flows/"> hundreds of millions worth of daily outflows</a> since its inception. The asset management firm’s Spot Bitcoin ETF had also experienced its highest outflow of approximately $589.9 million on February 29.&nbsp; 
Various factors have contributed to GBTC’s daily outflows, including its <a href="https://bitcoinist.com/grayscale-ceo-gbtc-fees/">exorbitant annual management fee of 1.5%</a>. Compared to all 12 Spot Bitcoin ETFs in the United States (US), Grayscale has the most expensive Spot Bitcoin ETF fee, exceeding even BlackRock, the second largest BTC ETF provider, which has an average annual management <a href="https://bitcoinist.com/blackrock-slashes-bitcoin-etf-fees-to-competition/">fee of 0.25%.&nbsp;</a> 
Some of <a href="https://bitcoinist.com/bitcoin-bleed-grayscale-ceo/">Grayscale’s outflows</a> were also a result of a reported selling connection with insolvent crypto exchange, FTX and other defunct cryptocurrency companies. FTX had sold about <a href="https://bitcoinist.com/ftx-sheds-nearly-1-billion-in-grayscale-bitcoin-etf/">$1 billion worth of GBTC</a> while Genesis, a cryptocurrency brokerage for institutional investors had sold almost 36 million shares in GBTC to purchase <a href="https://www.newsbtc.com/crypto/genesis-acquires-over-32000-btc-after-offloading-gbtc-shares/" rel="nofollow noopener" target="_blank">32,041 BTC </a>worth more than $2.1 billion.&nbsp; 
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/nQKYyUT6/" alt="Bitcoin price chart from Tradingview.com" width="3286" height="1576">

Grayscale Spot Bitcoin ETF Turns Positive After $17.5 Billion In Outflows, Sees Inflows For The First Time

Table of Contents

Bitcoinist

Other articles published on May 5, 2024

Kraken Pro Expands Margin Trading with Shiba Inu Cryptocurrency, Emphasizing Community-Driven Growth

Ripple CEO Brad Garlinghouse Affirms XRP Is Not a Security Ahead of Stablecoin Launch

Justin Sun Dominates Liquid Restaking Protocol with Massive Deposit

Crypto Expert to Establish $1.25 Billion Crypto Fund, Highlights Potential in Two Key Areas: Disc...

Rated: Week’s top 3 new cryptocurrencies with the largest trading volume

XRP Faces Volatility as SEC Prepares to Respond: Key Updates for Crypto Investors (XRP)

Join our free newsletter for daily crypto updates!