Grayscale’s GBTC Bitcoin ETF Sees Inflows After 78 Days of Outflows
Grayscale’s Bitcoin Trust exchange-traded fund (ETF) experienced a day of net positive inflows for the first time in 78 days. Preliminary data from Farside reveals that on May 3, Grayscale’s Bitcoin Trust (GBTC) saw $63 million in net inflows. This comes after approximately $17.5 billion in outflows since the launch of 11 spot Bitcoin ETFs on January 11.
Franklin Templeton’s Bitcoin ETF also saw significant inflows, reaching a record high of $60.9 million. Fidelity’s Wise Origin Bitcoin Fund led the day’s inflows with an impressive $102.6 million, followed closely by the Bitwise Bitcoin Fund with $33.5 million and the Invesco Galaxy Bitcoin ETF with $33.2 million.
The crypto community is speculating on how this development might impact the price of Bitcoin. Some believe that decreased sell pressure and increased demand from ETFs could result in more BTC being bought than miners can create. This optimism is reflected in the prediction of crypto trader Jelle, who suggests that Bitcoin’s new all-time high may be on the horizon due to the significant inflows into Grayscale’s ETF.
Grayscale’s previous outflows have been attributed to several factors. One major reason is the comparatively high fees of GBTC, which stand at 1.5%, while other ETFs have fees below 1%. Franklin Templeton currently offers the lowest fee at 0.19%. Additionally, bankrupt crypto firms FTX and Genesis selling off large amounts of GBTC shares to repay creditors has contributed to the outflows.
Market observers have been speculating when the “Bitcoin bleed” in GBTC will come to an end. While outflows slowed down in late January and February, some analysts believed they could be nearing their conclusion. However, Genesis was permitted to liquidate approximately $1.3 billion worth of GBTC shares in mid-February, prolonging the outflows. ETF analyst Eric Balchunas from Bloomberg suggested that the outflows would likely stop once GBTC experienced a 25% reduction in outstanding shares, but a poll indicates that most respondents expect the bleed to end in the range of 35-50%.
Bitcoin’s price has responded to both outflows and inflows, surging by 4.91% over the past 24 hours to reach $62,840 at the time of publication, according to CoinMarketCap data.