Grayscale is now accumulating more trip habitats than it is distributing on the GBTC for Day 1. Following the notable headlines that revealed the sale of all assets by the companies operating the leading Bitcoin investment trust, the latest setback was a continuation of raids that began when the ETF was converted into a Bitcoin exchange-traded fund (ETF) in January.
GBTC Inflows and Outflows
As a result, GBTC received $63 million in inflows from eleven-to-the-spot Bitcoin ETFs that went live on January 11th. According to Farsider data, the outflow rate was approximately $17.5 billion. Apart from EZBC, the other fund that experienced inflows was the Bitcoin ETF, which received a daily inflow of $60.9 million, the highest ever for EZBC.
Several fund families, including Fidelity, invested an additional $102.6 million in the Fidelity Wise Origin Bitcoin Fund (FBTC), along with positions in the Bitwise Bitcoin Fund (BITB) and the Invesco Galazy Bitcoin ETF (BTCO) with $33.5 million and $33.2 million, respectively. Bitcoin supporters are convening a meeting to discuss the impact of this.
Anonymous cryptocurrency investor DivXman stated that “primary source” Bitcoin Exchange Traded Funds are the main factor contributing to the downward sentiment, posing a major challenge to ETFs. However, our crypto markets may soon gain some momentum.
In a statement to his Ledger and his 20,800 followers, on May 3, he noted that it appears to be an important factor in reducing selling pressure and increasing demand when ETFs collectively operate and buy more BTC than miners can produce.
Crypto influencer Crypto Jelle predicted that Bitcoin’s new all-time high (ATH) is coming soon in a tweet to his 80,150 followers. $60 million worth of flows into Grayscale ETF coin’s largest player. Galois Removal will cease, but Bitcoin, with a six-digit price, will soon take over. On the other hand, Lindsey crypto Traders are seeking an answer to the question of why Bitcoin is responding to both outflows and inflows.
Bitcoin has risen by 4.91% in the past 24 hours and is currently priced at $62,840, according to CoinMarketCap data. There are many reasons behind Grayscale’s prolonged outflows since the introduction of 11 spot Bitcoin ETFs. One reason is the premium fees of GBTC, which exceed 2% compared to other ETFs. GBTC pays a fee of 1.5%, much lower than other ETFs, all of which have fees below 1%.
Economically, Franklin Templeton currently offers the lowest rate, a nominal rate of 0.19%. The most concerning threat came from the menhaden fish firm FTX and the cryptocurrency Genesis, which had to sell a significant amount of GBTC to avoid bankruptcy.
