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

A rather shocking development, Grayscale Bitcoin Trust (GBTC) The first influx was recorded after the sighting. large daily outflows Since its release.

Grayscale Bitcoin ETF records over $60 million in inflows

Grayscale Spot Bitcoin ETF has finally broken its record of 82 consecutive days of outflows since its inception on January 11, 2024. GBTC had its first day of inflows on May 3rd after recording outflows of approximately $17.46 billion.

according to data Grayscale’s Spot Bitcoin ETF from investment management firm Pharcyde had attracted about $63 million in inflows, along with other Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) There was an inflow of $12.7 million.

The total inflows recorded in that single day amounted to approximately $378.3 million. Franklin Templeton Spot Bitcoin ETFEZBC topped the list with inflows of $102.6 million.

Eric Balchunas, senior analyst and ETF expert at Bloomberg, expresses disbelief at Grayscale’s turnaround. said It is said that thorough verification was necessary to confirm unexpected developments.

Additionally, this surprising inflow comes after recent events where 10 US spot Bitcoin ETFs, including BlackRock’s IBIT, traded together. Recorded a huge outflow of over $563.7 million In just one day. These spills were probably caused by the following factors: Federal Reserve System (FED) The decision to keep interest rates unchanged led to a widespread downturn in the cryptocurrency market.

During the same period, BTC also experienced a significant decline, but the cryptocurrency is currently trading at $63,175, up 6.36% in the past 24 hours and jumping above the $60,000 support level, according to CoinMarketCap. .

Factors behind mass outflow of GBTC

Grayscale recorded its first recorded influx after the experience. Hundreds of millions of dollars worth of leaks every day Since its founding. The asset management company’s Spot Bitcoin ETF also recorded a record outflow of approximately $589.9 million on February 29th.

Various factors contribute to the daily outflow of GBTC. Exorbitant management fee of 1.5% per year. When compared to all 12 Spot Bitcoin ETFs in the United States (US), Grayscale’s Spot Bitcoin ETF has the highest fees, even surpassing BlackRock, the second-largest BTC ETF provider by average annual management. . Fee: 0.25%.

Several grayscale spill This was also a result of reported sales relationships with bankrupt cryptocurrency exchange FTX and other defunct crypto companies. FTX was selling approx. GBTC worth $1 billion Meanwhile, Genesis, an institutional crypto brokerage, sold about 36 million shares to purchase GBTC stock. 32,041BTC It is 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

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