Grayscale Bitcoin Trust Sees Inflow Again After Months of Outflows

May. 07, 2024. 2 mins. read.

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Grayscale’s Bitcoin Trust (GBTC) has seen an influx of capital for two consecutive days, marking an end to the prolonged four-month period of significant outflows. Prior to this reversal, the crypto asset manager experienced daily withdrawals averaging $218 million over a 78-day streak starting from January 11, cumulatively amounting to over $17.5 billion in outflows from its spot Bitcoin exchange-traded fund (ETF).

This negative trend halted on May 3, with a notable inflow of $63 million into GBTC. This contributed to a net positive inflow of $378.3 million for the overall spot BTC ETF market, following a week of losses. GBTC continued this positive momentum into the following week, adding a further $3.9 million on May 6, totaling $66.9 million in recent inflows.

Despite these inflows, GBTC’s net outflow for the year still stands at a substantial $17.4 billion. However, the broader spot Bitcoin ETF sector in the United States shows a robust balance sheet. Leading the investment influx is BlackRock’s iShares Bitcoin Trust (IBIT) with net inflows reaching $15.5 billion. Other significant contributions have come from Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) at $8.1 billion, Cathie Wood’s ARK 21Shares Bitcoin ETF at $2.1 billion, and the Bitwise Bitcoin ETF Trust (BITB) at $1.7 billion, bringing the total market inflow to nearly $11.8 billion to date.

In related developments, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on approving or rejecting several pending applications for spot Ether ETFs from firms including BlackRock, Grayscale, and Invesco Galaxy until July. The SEC stated, “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.” This delay also affects other applicants like Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares, aligning with analyst predictions on the matter.

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About the Writer

Sneha Ghodvaidya

30.11721 MPXR

Sneha Ghodvaidya is a creative whirlwind with a knack for turning daydreams into stunning self-portraits and illustrations. An INFJ soul, she's a bit of an introvert until you get her talking about her passions—then, good luck getting her to stop!