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

In a rather shocking development, Grayscale Bitcoin Trust (GBTC) recorded its first ever influx after witnessing important daily outings since its launch.

Grayscale Bitcoin ETF Sees Over $60 Million in Inflows

Grayscale’s Spot Bitcoin ETF has finally ended its 82-day outflow streak since its launch on January 11, 2024. GBTC saw its first day of inflows on May 3, after seeing outflows of around 17, 46 billion dollars.

According to data from Farside, an investment management company, Grayscale’s Spot Bitcoin ETF has accumulated inflows of approximately $63 million, alongside other Bitcoin ETFs like BlackRock iShares Bitcoin Trust (IBIT) which recorded inflows of $12.7 million.

The total inflows recorded during this single day were approximately $378.3 million, of which Franklin Templeton Spot Bitcoin ETFEZBC, leading the pack with the highest receipts of $102.6 million.

Expressing disbelief over Grayscale’s turnaround, Bloomberg senior analyst and ETF expert Eric Balchunas REMARK that he needed to carry out thorough checks to confirm the unexpected development.

Additionally, this surprising influx comes after a recent event that saw 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, collectively recording huge cash outflows worth over $563.7 million in a single day. These exits may have been triggered by the Federal Reserve (FED) decision to keep rates unchanged, which will lead to a broader slowdown in the crypto market.

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

Factors Behind Massive GBTC Outflows

Grayscale experienced its first recorded influx after experiencing hundreds of millions of daily exits since its creation. The asset management firm’s Spot Bitcoin ETF also saw its highest outflow of around $589.9 million on February 29.

Various factors contributed to GBTC’s daily outflows, including its exorbitant annual management fee of 1.5%. Compared to the 12 Spot Bitcoin ETFs in the United States (US), Grayscale has the most expensive Spot Bitcoin ETF fees, even surpassing BlackRock, the second largest BTC ETF provider, which has an average annual management. 0.25% fee.

A part of Grayscale outputs were also the result of a reported sales connection with an insolvent cryptocurrency exchange, FTX and other defunct cryptocurrency companies. FTX had sold approximately $1 billion worth of GBTC while Genesis, a cryptocurrency brokerage aimed at institutional investors, had sold nearly 36 million GBTC shares to buy 32,041 BTC worth 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