Consecutive Inflows Persist for Grayscale’s Spot Bitcoin ETF on Its Second Day
Grayscale’s Bitcoin Trust (GBTC) has seen a significant change in its fortunes, with net inflows for the second consecutive day. This comes after a period of outflows that exceeded $17.5 billion since spot Bitcoin (BTC) ETFs were introduced in January.
On May 6, GBTC received $3.9 million in inflows, according to data from Farside Investors. While this amount is relatively small compared to other funds like the Fidelity Wise Origin Bitcoin Fund (FBTC), it was enough to secure GBTC its second day of net inflows.
To provide some context, GBTC experienced its first net inflow in over three months on May 3. Prior to this, it had been facing consecutive outflows that resulted in a significant loss of its Bitcoin holdings. These outflows were a major factor in the daily performance of the broader spot Bitcoin ETF market.
Since its conversion into an ETF on January 10, GBTC had been experiencing net outflows, losing 33% of its Bitcoin holdings, as reported by crypto.news.
The introduction of the Grayscale Bitcoin ETF has contributed to the overall net inflows for spot Bitcoin ETFs. On May 3, these ETFs saw inflows of over $378.3 million, followed by $217 million on May 6, with GBTC among the contributors.
On May 6, the top performers in terms of inflows were FBTC and Ark 21Shares Bitcoin ETF (ARKB), with $99.2 million and $75.6 million respectively. The BlackRock iShares Bitcoin Trust (IBIT) also recorded an inflow of $21.5 million.
According to Bloomberg analyst Eric Balchunas, the spot ETF market is expected to experience a combination of inflows and outflows over time. He notes that these funds will generally exhibit continued growth and have a strong and committed investor base.
The recent inflows into GBTC and other spot Bitcoin ETFs are reflective of Bitcoin’s recent performance. Although it experienced some downward trends in the past few days, with a low of $57,000, it has since rebounded and exceeded $65,000 in market value. However, as of now, BTC has dropped 1.59% in the last 24 hours and is trading at $64,400.
In other news, Bitfinex CTO has confirmed that there was no data breach and dismissed allegations as fake.
