Grayscale Experiences Bitcoin Trust Inflows After Four-Month Outflow Streak
Summary:
Grayscale, a cryptocurrency asset manager, ends a four-month outflow streak, with inflows returning for two consecutive days into its Grayscale Bitcoin Trust (GBTC). Despite an outflow of $17.4 billion, the overall US spot Bitcoin ETF maintains a positive balance, with top contributors including BlackRock’s iShares Bitcoin Trust and Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund. The U.S. Securities and Exchange Commission has postponed decisions on spot Ether (ETH) ETF applications from various service providers until July.
After four months of consistent outflows, Grayscale, a leading cryptocurrency asset manager, has seen a return of inflows into its Grayscale Bitcoin Trust (GBTC) for two consecutive days. From January 11, around $218 million was being withdrawn daily from Grayscale's Bitcoin (BTC) exchange-traded fund (ETF). Over these 78 days, GBTC saw over $17.5 billion in total outflows. A reversal in this pattern was observed on May 3 when GBTC experienced its first significant inflow of $63 million. This resulted in the complete BTC ETF market recording net positive inflows of $378.3 million after seven straight days of losses, according to the Spot Bitcoin ETF Flow Table. GBTC then saw a further inflow of $3.9 million on May 6, raising the total inflows to $66.9 million. Despite the net outflow of $17.4 billion for GBTC, the overall US spot Bitcoin ETF still maintains a positive balance sheet. Top investment contributors include BlackRock’s iShares Bitcoin Trust (IBIT) with net inflows of $15.5 billion, Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) with $8.1 billion, ARK 21Shares Bitcoin ETF with $2.1 billion, and Bitwise Bitcoin ETF Trust (BITB) with $1.7 billion. At the time of writing, the total investment flow into the spot Bitcoin ETF market stands nearly at $11.8 billion. The U.S Securities and Exchange Commission (SEC) has recently postponed its decision on approving or denying spot Ether (ETH) ETF applications from different service providers like BlackRock, Grayscale, and Invesco Galaxy to July. The SEC expressed the need for more time to review the proposed rule change and assess the concerns associated with it. All remaining Ether ETF applicants, including Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares, have also experienced similar delays, which aligns with industry analyst predictions.
Published At
5/7/2024 11:19:26 AM
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