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

In a somewhat shocking development, Bitcoin Gray Box (GBTC) She recorded her first ever stream after watching Large daily flows Since its launch.

Grayscale Bitcoin ETF records inflows of more than $60 million

Grayscale's Spot Bitcoin ETF finally broke its 82-day streak of outflows since its launch on January 11, 2024. GBTC saw its first day of inflows on May 3, after seeing approximately $17.46 billion in outflows.

according to Data From investment management firm Farside, Grayscale's Spot Bitcoin ETF has amassed inflows of around $63 million, along with other Bitcoin ETFs such as BlackRock's iShares Bitcoin Trust (IBIT) Its flows amounted to $12.7 million.

The total flows recorded on that single day amounted to approximately $378.3 million Franklin Templeton Bitcoin ETFEZBC, the leader of the group with the highest inflows of $102.6 million.

Expressing disbelief at Grayscale's turnaround, Eric Balchunas, a senior Bloomberg analyst and ETF expert, said: Notice He had to conduct comprehensive checks to confirm the unexpected development.

Furthermore, the sudden influx comes after a recent event that saw 10 US-based bitcoin spot ETFs, including BlackRock's IBIT, emerge en masse. Recording massive external inflows amounting to more than $563.7 million in one day. These outflows are likely due to… Federal Reserve (FED) The decision to keep interest rates unchanged, which led to a broader decline in the cryptocurrency market.

Bitcoin also saw significant declines around the same time, however, the cryptocurrency is currently up 6.36% over the past 24 hours, jumping above the $60,000 support levels to trade at $63,175, according to CoinMarketCap.

Factors behind GBTC's massive outflows

Grayscale saw its first recorded flow after the experiment Hundreds of millions of daily streams Since its inception. The asset management company's Spot Bitcoin ETF also saw its highest outflow of about $589.9 million on February 29.

Various factors have contributed to the daily outflows of GBTC, including Hefty annual management fee of 1.5%. Compared to all 12 Spot Bitcoin ETFs in the United States (U.S.), Grayscale has the most expensive Spot Bitcoin ETF fees, surpassing even BlackRock, the second-largest BTC ETF provider, which has an average AUM. The fee is 0.25%.

some Grayscale outflows It was also the result of a reported sales connection with insolvent cryptocurrency exchange FTX and other defunct cryptocurrency companies. FTX has been sold for approx $1 billion worth of GBTC While Genesis, a cryptocurrency brokerage for institutional investors, sold nearly 36 million GBTC shares for purchase. 32,041 Bitcoin Its value is more than $2.1 billion.

BTC price now sitting above $63,000 | Source: BTCUSD on Tradingview.com

Featured image from Forkast News, chart from Tradingview.com