• 26 May, 2024

Grayscale Bitcoin Trust Sees First Positive Inflows in Months

Grayscale Investments reported the first day of net positive inflows for the Grayscale Bitcoin Trust (GBTC) after four months of continuous outflows since its conversion to a Bitcoin ETF in January. A net of $63 million was added, according to a report by Farside Investors on Friday.

On January 10, the securities regulator approved the 19b-4 applications of ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton, allowing a spot Bitcoin ETF to be listed and traded on the respective exchanges.

Franklin Templeton’s Bitcoin ETF (EZBC) recorded its highest-ever inflow of $60.9 million, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with $102.6 million, Bitwise Bitcoin Fund (BITB) with $33.5 million, and Invesco Galaxy Bitcoin ETF (BTCO) with $33.2 million.

Franklin Templeton’s Bitcoin ETF (EZBC) is ranked ninth among US spot Bitcoin funds, with $312 million in assets. Despite its ranking, spot Bitcoin ETFs have received $11.3 billion in net inflows, and continued availability from asset managers is projected to support market development.  

A pseudonymous crypto investor known as DivXman shared insights with his followers regarding the influence of Grayscale Bitcoin Trust (GBTC) on the market. He suggested that GBTC was a significant source of selling pressure across various Bitcoin exchange-traded funds (ETFs). However, DivXman also mentioned a potential shift in dynamics (“the tides could be turning”), implying a change in market sentiment or behavior.

DivXman suggests that if the selling pressure from GBTC decreases, demand for Bitcoin could increase. This could occur if GBTC investors decide to hold onto their shares rather than sell them or if there’s increased buying interest in GBTC shares.

Meanwhile, cryptocurrency trader Jordan Lindsey replied to the news by referring to Bitcoin’s price, claiming that it is obviously responding to outflows and inflows. Lindsey’s statement implies that Bitcoin’s price movement reflects the balance between these outflows and inflows. If outflows outweigh inflows, it could lead to downward pressure on Bitcoin’s price, whereas if inflows surpass outflows, it could drive the price higher.

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