Grayscale Investments has achieved first-day net inflows into Grayscale Bitcoin Trust (GBTC). This comes after nearly four months of continued outflows since Bitcoin was converted into an exchange-traded fund (ETF) in January.
On May 3, Grayscale’s GBTC saw inflows of $63 million, after recording approximately $17.5 billion in outflows since the launch of 11 spot Bitcoin ETFs on January 11, according to Far Side News. Recorded. data.
Among other funds reported so far, Franklin Templeton’s Bitcoin ETF (EZBC) had record inflows of $60.9 million.
Meanwhile, Fidelity Wise Origin Bitcoin Fund (FBTC) led the day’s inflows with $102.6 million, followed by Bitwise Bitcoin Fund (BITB) with $33.5 million and Invesco Galaxy. Bitcoin ETF (BTCO) followed with $33.2 million.
The cryptocurrency community has been speculating how this event will affect the price of Bitcoin (BTC).
Pseudonymous crypto investor DivXman told his followers that GBTC is the “main cause” of selling pressure across the Bitcoin Spot ETF, but the “tide” may be turning.
“This effectively means that the ETF will collectively buy more BTC than miners produce, while selling pressure will be significantly reduced and demand will increase further,” he wrote in a May 3 article. I explained this to my 20,800 X followers. post.
On the same day, cryptocurrency trader Jere predicted to his 80,300 X followers that a new all-time high for Bitcoin is imminent.
“$60M worth of inflows into Grayscale ETF. Halving is over and six-digit Bitcoin will soon follow.”
Related: Grayscale Spot Bitcoin ETF “halved” before BTC halving
On the other hand, cryptocurrency trader Jordan Lindsay said, answered In response to this news, he said, pointing to the price of Bitcoin, “It’s clearly reacting to both outflows and inflows.”
According to CoinMarketCap, the price of Bitcoin has increased by 4.91% in the past 24 hours to $62,840 at the time of publication. data.
Several factors have contributed to Grayscale’s continued outflow since the launch of 11 Spot Bitcoin ETFs. One reason is GBTC’s higher fees compared to other available ETFs. GBTC’s fees are set at 1.5%, while all other ETFs have fees below 1%.
Currently the cheapest option is Franklin Templeton, with a fee of 0.19%. Another major factor is that bankrupt crypto companies FTX and Genesis sold large amounts of GBTC stock to repay creditors.
On April 6, Cointelegraph reported that Genesis liquidated approximately 36 million GBTC shares for $2.1 billion and purchased 32,041 Bitcoin.
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