Grayscale’s GBTC Sees $63m Inflow For The First Time Since Launch

After four months of outflows exceeding inflows, Grayscale Bitcoin Trust (GBTC) is finally showing signs of turning around. As GBTC, this move could signal a positive change in the cryptocurrency market. recorded Net inflows were $63 million, breaking the negative trend that began since the ETF was established in January 2024. The development comes after the trust experienced significant outflows of $17.5 billion since its inception.

Source: SpotOnChain

The positive news for GBTC is not an isolated incident. Other Bitcoin-focused funds have also witnessed a surge in investments. Notably, Franklin Templeton’s EZBC ETF hit an all-time high with inflows of $60.9 million, while Fidelity’s FBTC led the pack with a notable $102.6 million. Bitwise’s BITB and Invesco Galaxy’s BTCO also saw significant inflows of $33.5 million and $33.2 million, respectively.

This renewed interest in Bitcoin funds has sparked debate about the potential impact on the cryptocurrency’s price. Experts believe that Grayscale’s GBTC could attract new investment, reducing overall selling pressure. This could increase demand for Bitcoin and drive up its price.

DivXman, a prominent cryptocurrency investor known by his online pseudonym, reflected on recent trends. He noted that GBTC has been the primary source of selling pressure across all Bitcoin Spot ETFs since their inception in January 2024. DivXman elaborated further, saying:

“This effectively means that the ETF collectively buys more BTC than miners can produce, while selling pressure is significantly reduced and demand increases further.”

Grayscale ETF inflows show optimism for Bitcoin price

Another cryptocurrency trader, Jere, expressed I am optimistic about the future price of Bitcoin. Mr. Jere expected inflows into Grayscale’s ETF to be $60 million. The Bitcoin halving event will end soon and Bitcoin prices will soon reach six digits.

While recent inflows have been positive, it is important to recognize the factors that contributed to Grayscale’s previous outflows from GBTC. A key factor is the fund’s relatively high fees compared to its competitors. GBTC has a 1.5% fee, while other Bitcoin ETFs have a fee of less than 1%. Franklin Templeton’s EZBC stands out in that it has the lowest fees (0.19%) of all his ETFs currently available.

Recent investment inflows into Bitcoin funds like GBTC indicate a potential tipping point for crypto prices. Market sentiment surrounding Bitcoin appears to be changing, as GBTC has recorded continuous outflows and other funds have also seen record inflows. Although it is still too early to definitively predict a spike in Bitcoin prices, these developments offer a glimmer of hope to investors and enthusiasts.

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