- Grayscale’s Bitcoin ETF, GBTC, records its second consecutive day of net inflows, breaking a four-month streak of outflows.
- US-based spot Bitcoin ETFs collectively received $217.06 million in funds on Monday, with Fidelity’s FBTC leading the pack.
- A recent report suggests that the growth of Bitcoin is reliant on spot Bitcoin ETFs, raising concerns about the future price trajectory of the cryptocurrency.
Grayscale’s Bitcoin ETF, GBTC, sees a reversal in trend with consecutive days of net inflows, while US-based spot Bitcoin ETFs collectively attract over $200 million in funds. The future of Bitcoin’s price trajectory may be linked to the performance of these ETFs.
Grayscale’s GBTC Breaks Four-Month Streak of Outflows
Grayscale’s spot Bitcoin ETF – GBTC – recorded its second consecutive day of net inflows on Monday, attracting $4 million into the trust. This follows Friday’s reversal of a 78-day net outflow trend, with an additional $63 million. Since its transition to a spot Bitcoin trust in January, GBTC has seen a total net outflow of $17 billion. Currently, the fund manages approximately 292,217 BTC (valued at $18.4 billion), down from 619,220 BTC on January 11th, according to its website.
US-Based Spot Bitcoin ETFs Attract Over $200 Million
On Monday, the 11 US-based spot Bitcoin ETFs collectively received $217.06 million in funds, catapulting the cumulative total net flow of investments to $11.8 billion. Fidelity’s FBTC topped the chart on May 6 with a whopping $99 million in inflows followed by Ark 21Shares spot Bitcoin ETF ARKB with $76 million, according to data compiled by SoSoValue. BlackRock’s IBIT recorded $22 million in inflows on the same day. Meanwhile, Galaxy Digital’s BTCO settled for inflows of $11 million, followed by Bitwise’s BITB, VanEck’s HODL, and Franklin Templeton’s EZBC with $2 million in inflows each. WisdomTree’s BTCW and Valkyrie’s BRRR recorded no flows during the period.
Spot Bitcoin ETFs and the Future of Bitcoin
Spot Bitcoin ETFs have played a significant role in driving the world’s leading cryptocurrency to reach an all-time high a few months before its fourth halving. However, the subsequent slowdown of these investment vehicles triggered a massive struggle for BTC as these funds halted the accumulation of coins in aggregate for over a month. A recent report by Ecoinometrics further claimed that the asset’s growth is reliant on spot Bitcoin ETFs, raising concerns about the future price trajectory of the cryptocurrency. Nonetheless, there has been a recent uptick in spot Bitcoin ETF figures following a brief period of slowdown. This resurgence has contributed to bitcoin’s price climbing above $63,000.
Conclusion
The performance of spot Bitcoin ETFs, such as Grayscale’s GBTC and Fidelity’s FBTC, can have significant implications for the future price trajectory of Bitcoin. With recent inflows into these funds, there may be a positive impact on Bitcoin’s price in the near term. However, the long-term outlook will likely depend on the sustained performance of these ETFs and their ability to attract investments.
