04 May

For the first time ever, Grayscale Investments has seen net positive inflows for the Grayscale Bitcoin Trust (GBTC). Following its conversion to a Bitcoin exchange-traded fund (ETF) in January, there have been outflows for almost four months running.

According to Farside preliminary data, since the 11 spot Bitcoin ETFs started on January 11, Grayscale's GBTC registered $63 million in inflows and roughly $17.5 billion in withdrawals. This was the case on May 3.

Franklin Templeton's Bitcoin ETF (EZBC) experienced its largest-ever inflow of $60.9 million among the other funds that have been disclosed thus far.

The day's largest inflows were $102.6 million from Fidelity Wise Origin Bitcoin Fund (FBTC), followed by $33.5 million from Bitwise Bitcoin Fund (BITB) and $33.2 million from Invesco Galaxy Bitcoin ETF (BTCO).

The cryptocurrency community has been making predictions about possible effects on the price of Bitcoin.

The "primary source" of sell pressure on all spot Bitcoin ETFs, according to pseudonymous cryptocurrency trader DivXman, is the GBTC, but "the tides" may be turning.

In a tweet from May 3, he informed his 20,800 X followers, "That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create."

On the same day, cryptocurrency trader Jelle told his 80,300 X followers that a new all-time high for Bitcoin was imminent.

"Grayscale's ETF will see inflows of $60 million. The halving chop will end, and 6-figure Bitcoin will follow."

In response to the news, cryptocurrency trader Jordan Lindsey mentioned the price of Bitcoin and said it is "obviously responding both to outflows and inflows."

As of the time of writing, the price of bitcoin was $62,840, up 4.91% from the previous day, according to data from CoinMarketCap.

Grayscale's continuous withdrawals since the introduction of the 11-spot Bitcoin ETFs have been caused by a number of variables. The high costs of GBTC in comparison to other ETFs on the market is one factor. The costs for other ETFs are all less than 1%, however GBTC charges 1.5%.

Franklin Templeton is currently the least expensive, charging 0.19%. The sale of significant quantities of GBTC shares by bankrupt cryptocurrency companies FTX and Genesis in an attempt to pay off creditors is another major factor.

May 2024, Cryptoniteuae

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