Grayscale’s Bitcoin ETF Sees Modest Inflows After $17.4B Loss
By Thomas Musgrave
Updated on May 7, 2024, at 13:53 EDT | 1 min read
After experiencing consistent outflows for four months, Grayscale’s spot Bitcoin exchange-traded fund (ETF) has finally seen a positive turnaround. In the past two days, the Grayscale Bitcoin Trust (GBTC) has attracted inflows totaling $66.9 million.
This change in direction comes after a significant period of decline, during which GBTC experienced an average daily outflow of $217 million, resulting in a total loss of over $17.5 billion since January 11.
The first sign of recovery appeared on May 3, when GBTC received a $63 million inflow, marking an end to the prolonged downward trend. The subsequent inflows over the following days resulted in a net positive inflow of $378.8 million over a seven-day period. A further $3.9 million inflow on May 6 solidified the positive trend, bringing the total capital influx into GBTC to $66.9 million.
Bitcoin ETFs in the U.S. market continue to demonstrate profitability, with BlackRock’s iShares Bitcoin Trust leading the pack, attracting the largest investment with net inflows reaching $15.5 billion.
Several other Bitcoin exchange-traded funds have also shown strong performance, attracting investments and contributing to the overall positive trend in the sector. According to data from The Block, other top performers include Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund with $8.1 billion in net inflows, Cathie Wood’s ARK 21 Shares Bitcoin ETF with $2.1 billion, and the Bitwise Bitcoin ETF Trust with $1.7 billion.
The market’s strong performance of Bitcoin has undoubtedly enticed investors to these ETFs, as evidenced by the current total investment flow into the spot Bitcoin ETF market of approximately $11.8 billion.
In other news, the U.S. Securities and Exchange Commission (SEC) has delayed its decision on approving or denying several applications for spot Ether (ETH) ETFs. The rulings on applications from industry giants such as BlackRock, Grayscale, and Invesco Galaxy have been postponed to July, along with applications from other Ether ETF issuers, including Fidelity, Hashdex, Franklin Templeton, and Ark 21 Shares.
The SEC has stated that it needs additional time to thoroughly evaluate the proposed rule changes and address the concerns raised in the applications before making a decision.
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