$66.9M inflows in 2 days wiped out by Grayscale Bitcoin ETF

Grayscale’s spot Bitcoin exchange-traded fund (ETF) experienced a brief period of inflows in May, but this momentum quickly faded as outflows resumed. The Grayscale Bitcoin Trust (GBTC) ETF, which had been bleeding money since its launch on January 11, saw inflows of $66.9 million in May. These investments occurred on May 3 and 6, with $63 million and $3.9 million coming in on each respective day. However, the inflow trend was short-lived. On May 7 and 9, GBTC recorded outflows of $28.6 million and $43.4 million, effectively canceling out the recent investments. Grayscale was the only spot Bitcoin ETF issuer to report outflows on these days. The other nine Bitcoin ETFs approved by the United States Securities and Exchange Commission (SEC) either saw positive inflows or no investments during this period. On average, the Grayscale Bitcoin Trust has been losing $211 million per day since its launch. However, inflows to the other ETFs have kept the net balance at a positive $11.7 billion. All Bitcoin ETF issuers, except GBTC, have positive inflow balances. Among them, BlackRock’s iShares Bitcoin Trust has attracted the highest investments, totaling nearly $15.5 billion to date. Other notable issuers include Fidelity’s Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and Cathie Wood’s ARK 21Shares Bitcoin ETF, which currently have net inflows of $8.1 billion, $1.7 billion, and $2.2 billion, respectively. According to VanEck CEO Jan VanEck, the retail sector accounts for 90% of Bitcoin ETF inflows. He mentioned that while some Bitcoin whales and institutions have invested in the ETF, they were already exposed to Bitcoin. VanEck anticipated that major institutional investments from banks and traditional firms would enter the market by May.