Grayscale Investments has experienced a significant turning point for its Grayscale Bitcoin Trust exchange-traded fund (ETF), as it recorded its first day of net positive inflows. This achievement comes after a continuous period of outflows since its conversion to a spot Bitcoin ETF in January.
According to preliminary data from Farside, Grayscale’s Bitcoin Trust (GBTC) received $63 million in net inflows on May 3. This follows approximately $17.5 billion of outflows since the launch of 11 spot Bitcoin ETFs on January 11.
In addition to Grayscale, other funds also saw notable inflows. Franklin Templeton’s Bitcoin ETF saw its highest-ever inflows of $60.9 million. Fidelity’s Wise Origin Bitcoin Fund led the day’s inflows with $102.6 million, followed by the Bitwise Bitcoin Fund with $33.5 million and the Invesco Galaxy Bitcoin ETF with $33.2 million.
The crypto community has been speculating on how this change in events might impact the price of Bitcoin (BTC). Pseudonymous crypto investor DivXman suggested that the GBTC was the primary source of sell pressure for all spot Bitcoin ETFs, but the situation could be shifting. He explained to his followers that this could lead to a decrease in sell pressure and an increase in demand, as ETFs collectively buy more BTC than miners can create.
Crypto trader Jelle also predicted to his followers that Bitcoin’s new all-time high is on the horizon. Meanwhile, crypto trader Jordan Lindsey highlighted the correlation between Bitcoin’s price and the outflows and inflows of GBTC.
Bitcoin’s price has increased by 4.91% in the past 24 hours to reach $62,840, according to CoinMarketCap data.
There have been several factors contributing to Grayscale’s continuous outflows since the launch of the 11 spot Bitcoin ETFs. One reason is the high fees associated with GBTC compared to other available ETFs. GBTC charges a fee of 1.5%, while other ETFs have fees below 1%. The cheapest option currently is Franklin Templeton, with a fee of 0.19%. Additionally, bankrupt crypto firms FTX and Genesis have been selling large amounts of GBTC shares to repay their creditors, which has further impacted the outflows.
Overall, Grayscale’s achievement of net positive inflows for GBTC marks a significant milestone and has sparked speculation about the potential impact on Bitcoin’s price.