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Grayscale Bitcoin Trust ETF Sees First Day of Net Positive Inflows Since Spot Bitcoin ETF Conversion

Grayscale Investments celebrated a significant milestone as its Grayscale Bitcoin Trust exchange-traded fund (ETF) experienced a day of net positive inflows after enduring nearly four months of continuous outflows since transitioning to a spot Bitcoin ETF in January.

On May 3, the Grayscale Bitcoin Trust (GBTC) observed $63 million in net inflows, marking a stark reversal from the approximately $17.5 billion in outflows recorded since the launch of 11 spot Bitcoin ETFs on Jan. 11, as per preliminary data from Farside.

Among the notable funds, Franklin Templeton’s Bitcoin ETF witnessed its highest-ever inflows, totaling $60.9 million.

Fidelity’s Wise Origin Bitcoin Fund led the day’s inflows with $102.6 million, followed by the Bitwise Bitcoin Fund with $33.5 million and the Invesco Galaxy Bitcoin ETF with $33.2 million.

The crypto community speculated on how this shift might influence Bitcoin’s price.

Pseudonymous crypto investor DivXman shared insights with his followers, noting GBTC’s significant role in sell pressure across spot Bitcoin ETFs but suggesting a potential turnaround.

He explained, “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create.”

READ MORE: Bitcoin Whale ‘Mr. 100’ Resumes Buying Amid Market Dip, Analysts Anticipate Price Consolidation and Potential Upswing

Crypto trader Jelle predicted to his followers that Bitcoin’s new all-time high is imminent, citing Grayscale’s ETF inflows as a catalyst for price surge.

Meanwhile, crypto trader Jordan Lindsey highlighted Bitcoin’s price response to both outflows and inflows.

At the time of publication, Bitcoin’s price had risen by 4.91% over the past 24 hours to $62,840, according to CoinMarketCap data.

Various factors contributed to Grayscale’s persistent outflows since the launch of the 11 spot Bitcoin ETFs.

One factor is GBTC’s comparatively high fees, standing at 1.5% compared to other ETFs with fees below 1%. Franklin Templeton’s ETF, for instance, boasts the lowest fee at 0.19%.

Additionally, bankrupt crypto firms FTX and Genesis have been offloading substantial GBTC shares to repay creditors.

Cointelegraph previously reported that Genesis liquidated around 36 million GBTC shares for $2.1 billion on April 6 to acquire 32,041 Bitcoin.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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