Bitcoin (BTC) ETF Grayscale’s GBTC Sees First Inflows in Over Two Months: A Crypto Market Turnaround?

• Grayscale’s Bitcoin Trust exchange-traded fund (ETF) records its first day of net positive inflows in 78 days, with $63 million in net inflows.
• Other funds, including Franklin Templeton’s Bitcoin ETF and Fidelity’s Wise Origin Bitcoin Fund, also see significant inflows.
• The crypto community speculates on the potential impact of these inflows on Bitcoin’s price.

Grayscale’s GBTC Bitcoin ETF sees positive inflows for the first time in over two months, sparking speculation on potential impact on Bitcoin’s price.

Grayscale’s GBTC Bitcoin ETF Records Positive Inflows

After a prolonged period of continuous outflows, Grayscale’s Bitcoin Trust exchange-traded fund (ETF) recorded its first day of net positive inflows. According to preliminary data from Farside, on May 3, Grayscale’s Bitcoin Trust (GBTC) witnessed $63 million in net inflows. The positive momentum comes after an approximate $17.5 billion in outflows since the launch of 11 spot Bitcoin ETFs on January 11.

Other Bitcoin ETFs Also See Inflows

Among the other funds making headlines, Franklin Templeton’s Bitcoin ETF saw its inflows reach a record high of $60.9 million. Meanwhile, Fidelity’s Wise Origin Bitcoin Fund led the day’s inflows with an impressive $102.6 million, followed closely by the Bitwise Bitcoin Fund with $33.5 million and the Invesco Galaxy Bitcoin ETF with $33.2 million.

Impact on Bitcoin’s Price

The crypto community has been buzzing with speculation regarding how this turn of events might influence the price of Bitcoin. Pseudonymous crypto investor DivXman noted that GBTC had been a primary source of sell pressure across all spot Bitcoin ETFs but hinted at a possible shift in dynamics. He suggested that decreased sell pressure and increased demand might result from ETFs collectively buying more BTC than miners can create.

Factors Leading to Grayscale’s Outflows

Several factors have contributed to Grayscale’s previous outflows since the launch of the 11 spot Bitcoin ETFs. One prominent reason is GBTC’s comparatively high fees, standing at 1.5%, while other ETFs boast fees below 1%. Currently, Franklin Templeton offers the lowest fee at 0.19%. Additionally, the selling off of large amounts of GBTC shares by bankrupt crypto firms FTX and Genesis in an effort to repay creditors has been another key driver.

Conclusion

With Grayscale’s GBTC Bitcoin ETF recording its first positive inflows in over two months, the crypto community is closely watching the potential impact on Bitcoin’s price. The shift in dynamics, with decreased sell pressure and increased demand, could potentially influence Bitcoin’s price trajectory in the coming days.