Grayscale Bitcoin ETF: A $66.9M Inflows Reversal
Investments in Grayscale’s Bitcoin (BTC) exchange-traded fund (ETF) quickly declined after a short surge, resulting in significant outflows. The Grayscale Bitcoin Trust (GBTC) experienced inflows of $66.9 million in May after a continuous 78-day period of outflows totaling $17.5 billion since its launch on January 11. Specifically, on May 3 and 6, the fund attracted investments of $63 million and $3.9 million respectively. The trend did not continue, as GBTC recorded outflows of $28.6 million on May 7 and $43.4 million on May 9, essentially negating the recent investments. Notably, Grayscale was the only Bitcoin ETF issuer reporting outflows during this time, with the other nine approved ETFs recording positive or no investments.
On average, the Grayscale Bitcoin Trust has been losing $211 million per day since its launch. Contributions from other participants have kept the net balance positive at $11.7 billion. It is important to mention that all Bitcoin ETF issuers, except GBTC, have maintained positive inflow balances. Among them, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted the highest investments, totaling nearly $15.5 billion to date. Other notable issuers include Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin ETF (ARKB), which currently have net inflows of $8.1 billion, $1.7 billion, and $2.2 billion, respectively.
During Paris Blockchain Week in April, VanEck CEO Jan VanEck revealed to that 90% of Bitcoin ETF inflows are from the retail sector. He stated that although some Bitcoin whales and institutions have moved assets into the fund, they were already exposed to Bitcoin. VanEck predicted that major institutional investments from banks and traditional firms would arrive by May.
12 thoughts on “Grayscale Bitcoin ETF: A $66.9M Inflows Reversal”
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The investments in Bitcoin ETFs are just another example of the increasing mainstream acceptance of cryptocurrencies.
Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and ARK 21Shares Bitcoin ETF are also having great success with net inflows.
I had such high expectations for Grayscale, but it seems like they just can’t get their act together.
The net balance for the Grayscale Bitcoin Trust is still positive, thanks to contributions from other participants.
I feel like I’ve been tricked into investing in the Grayscale Bitcoin Trust. Where are my returns?
I’m definitely staying away from the Grayscale Bitcoin Trust. It’s just a sinking ship.
This is so disappointing! I can’t believe the decline in investments after such a promising surge.
Although Grayscale’s Bitcoin ETF has been losing on average, it’s a testament to the resilience of the overall market that the net balance remains positive.
It’s hard to maintain any confidence in Grayscale when they keep recording outflows. Time for a change in strategy, perhaps?
I’m curious to see if major institutional investments will actually arrive by May as predicted by Jan VanEck.
Each Bitcoin ETF issuer seems to have its own unique approach and success in attracting investments.
The ups and downs in investments only serve to make the Bitcoin market more interesting.