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Grayscale ETF Records First Day of Inflows Ever

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Sat, 4/05/2024 - 13:18
Grayscale ETF Records First Day of Inflows Ever
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The Grayscale Bitcoin Trust (GBTC), the largest Bitcoin ETF by assets, experienced a net inflow of new money from investors for the first time since its debut in January, according to Farside Investors. On Friday, May 2, a net $63 million was added to the trust.

GBTC has long been a popular financial instrument for investing in Bitcoin (BTC) without directly purchasing the cryptocurrency. However, it faced increased competition in January when it was converted into an easier-to-trade ETF, coinciding with the launch of nine rival spot Bitcoin ETFs.

Due to its relatively higher fees, investors withdrew billions of dollars from GBTC, resulting in a streak of 78 consecutive days of outflows that ended last Friday.

Currently, GBTC holds $18.1 billion in assets, while IBIT, which now ranks second, started from zero in January and currently holds $16.9 billion. GBTC's assets have declined from over $26 billion previously.

Perfect Friday for Bitcoin ETFs

According to SoSoValue, the Bitcoin spot ETF experienced a total net inflow of $378 million on May 3, marking the first net inflow after seven consecutive days of net outflows. Additionally, the Grayscale ETF GBTC saw a rare single-day inflow of $63.0112 million.

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Source: SoSoValue

In Hong Kong, the total net assets of the three Bitcoin spot ETFs amount to approximately $250 million, with holdings of approximately 4,225 BTC. Similarly, the total net assets of the three Ethereum spot ETFs in Hong Kong are approximately $48.52 million, with holdings of approximately 16,000 ETH.

Bulls return?

BTC ETF flows

By May 2, every ETF recorded outflows for the first time, totaling $563.7 million — the largest losses since trading began in January. This decline has persisted for nearly two months, with funds experiencing approximately $6 billion in losses over the past four weeks, representing a 20% drop in assets under management.

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