Grayscale’s Bitcoin Trust (GBTC) has finally seen some positive inflows after a long streak of outflows.
Inflows Break the Outflow Streak
GBTC’s Spot Bitcoin ETF broke its 82-day outflow streak on May 3rd. It recorded inflows of over $60 million, a significant shift from the $17.46 billion in outflows it had seen since its launch.
Other Bitcoin ETFs Also See Inflows
Other Bitcoin ETFs also experienced inflows on that day. BlackRock’s iShares Bitcoin Trust (IBIT) had inflows of $12.7 million, and Franklin Templeton’s Spot Bitcoin ETF (EZBC) led the pack with $102.6 million.
Factors Behind the Outflows
GBTC’s previous outflows were attributed to several factors:
- High management fee: GBTC’s annual management fee of 1.5% is higher than other Spot Bitcoin ETFs.
- Selling by insolvent companies: FTX and Genesis sold significant amounts of GBTC, contributing to the outflows.
Bitcoin’s Recovery
The recent inflows coincide with a recovery in the Bitcoin market. BTC has risen above $60,000 support levels and is currently trading at $63,175.
