Bitcoin ETF

Bitcoin

ETF COIN

Grayscale Bitcoin Trust

In another remarkable day for cryptocurrency investments, US-based spot Bitcoin Exchange Traded Funds (ETFs) witnessed a substantial influx of capital, totaling $257.3 million on Thursday. This significant inflow marks the third consecutive day of large-scale investments into these funds, signaling a robust and returning interest among institutional and retail investors alike in Bitcoin.
The Grayscale Bitcoin Trust (GBTC) reported a positive inflow of $4.6 million, continuing its upward trend for the second day. BlackRock, a major player in the investment arena, also saw a noteworthy resurgence in inflows, capturing $93.7 million after a stagnant three days. This development indicates a renewed <a href="https://bitcoinist.com/bitcoin-miner-price-electrical-cost-historically/" target="_blank" rel="noopener noreferrer nofollow">confidence in Bitcoin</a> from a variety of investor bases.
Other ETF providers also saw impressive inflows: Fidelity reported $67.1 million, Bitwise took in $1.4 million, ARK Invest added $62 million, Invesco received $6.2 million, Franklin saw $3.8 million and Valkyrie gained $18.5 million.
This sustained inflow trend across multiple providers underlines a collective bullish sentiment in the market. Renowned crypto analyst WhalePanda (@WhalePanda) highlighted the significance of these movements.
“Yesterday’s ETF flows by FarsideUK was entirely positive again for $257.3 million. […]. After the price going back to $66.500 on Wednesday, we had some consolidation and it’s now [above $66,000]. No other major news was announced, the fact that the price didn’t move with these inflows tells me that there is another party unloading in this range.”
<blockquote class="twitter-tweet">
 Good morning,
 Yesterday’s ETF flows by <a href="https://twitter.com/FarsideUK?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@FarsideUK</a> was entirely positive again for $257.3 million.
 Blackrock finally had inflows again for $93.7 million. Fidelity did $67.1 million and Ark $62 million.
 Even <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$GBTC</a> was positive for $4.6 million.
 After the price going back to… <a href="https://t.co/qpJFCAoenS" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/qpJFCAoenS</a>
 — WhalePanda (@WhalePanda) <a href="https://twitter.com/WhalePanda/status/1791319064050008133?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 17, 2024</a>
</blockquote>
<h2 id="old-bitcoin-etf-debate-reignites">Old Bitcoin ETF Debate Reignites</h2>
Amidst the inflow of excitement, a seasoned debate concerning the transparency and potential for market manipulation within the Bitcoin ETF ecosystem resurfaced yesterday. Tyler Durden, a pseudonymous crypto commentator, expressed concerns about the off-chain recording of Bitcoin transactions by large institutions like BlackRock.
“<a href="https://bitcoinist.com/blackrock-private-bitcoin-event/" target="_blank" rel="noopener noreferrer nofollow">Blackrock</a> can take as much Bitcoin as they want from Coinbase and the transaction is recorded off chain. I’d like to see all of the ETF’s wallets. […] This means they can borrow Bitcoin from Coinbase to short and are not required to show any proof they hold 1:1. There’s also a 2-30 day settlement. All settlements are done in cash. The writings on the wall, unless someone can find the ETFs wallets on-chain.”
Responding to these <a href="https://x.com/daveweisberger1/status/1791095403032535314" target="_blank" rel="noopener noreferrer nofollow">concerns</a>, Dave Weisberger, chairman of CoinRoutes, defended the practices imposed by regulatory guidelines: “OF COURSE they had to do it that way because of the ‘cash creation/redemption’ the SEC forced. The <a href="https://bitcoinist.com/blackrock-bitcoin-etf-broadens-reach/" target="_blank" rel="noopener noreferrer nofollow">Authorized Participants</a> can’t ‘touch’ spot Bitcoin so MUST engage in off-chain transactions. As I said repeatedly, ‘in kind’ would have been more efficient &amp; transparent, but this fear mongering is nonsense.”
Weisberger emphasized that the ETFs are required by their charter to hold full backing in spot Bitcoin for all settled shares, ensuring adherence to regulatory standards.
Moreover, James Seyffart, a Bloomberg ETF expert, also <a href="https://x.com/JSeyff/status/1791171669614084480" target="_blank" rel="noopener noreferrer nofollow">weighed in</a>, supporting Weisberger’s perspective and hinting at the ongoing learning curve in the ETF industry regarding cryptocurrency transactions. “The gang learns about cash creation,” Seyffart said, “What a throwback to early December 2023. I pretty much agree with Dave here.”
At press time, BTC traded at $66,109. <img loading="lazy" src="https://bitcoinist.com/wp-content/uploads/2024/05/BTCUSD_2024-05-17_10-45-42.png?resize=1024%2C472" alt="Bitcoin price" width="1024" height="472">

Spot Bitcoin ETFs Record Third Day Of Massive Inflows As Price Tops $66,000

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