New York, NY – The Grayscale Bitcoin Trust (GBTC) has made headlines with its surprising change in fortunes, as it recently experienced its first-ever inflow after a period of significant daily outflows since its launch. The Grayscale Spot Bitcoin ETF, which had been seeing outflows since January 11, 2024, finally saw a reversal of this trend on May 3, attracting over $60 million in inflows.
Data from investment management firm Farside revealed that Grayscale’s Spot Bitcoin ETF received inflows of about $63 million, alongside other Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust (IBIT), which saw inflows of $12.7 million. The total inflows on that particular day amounted to approximately $378.3 million, with Franklin Templeton’s Spot Bitcoin ETF, EZBC, leading the pack with inflows of $102.6 million.
The unexpected influx into Grayscale comes on the heels of a recent event where 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, saw massive outflows totaling over $563.7 million in a single day. These outflows were potentially triggered by the Federal Reserve’s decision to maintain rates, leading to a broader downturn in the crypto market.
Despite experiencing significant declines previously, Bitcoin has rebounded with a 6.36% increase in the past 24 hours, surpassing $60,000 levels to trade at $63,175, as reported by CoinMarketCap.
Grayscale’s struggles with daily outflows had been attributed to various factors, including its high annual management fee of 1.5%, making it the most expensive Spot Bitcoin ETF in the US market. Additionally, reports of selling connections with insolvent crypto exchange FTX and other defunct cryptocurrency companies contributed to the outflows, with FTX selling approximately $1 billion worth of GBTC and Genesis, a cryptocurrency brokerage, offloading nearly 36 million shares in GBTC to purchase over 32,041 BTC worth more than $2.1 billion.
The recent turnaround for Grayscale highlights the volatile nature of the cryptocurrency market and the influence of external factors on investment decisions. With Bitcoin’s price showing resilience amidst market fluctuations, investors and analysts are keenly observing the developments in the crypto space for potential future trends and opportunities.