Grayscale Bitcoin ETF’s Journey to Recover $17.4B Outflows

Grayscale, a cryptocurrency asset manager, has ended its streak of outflows as its Grayscale Bitcoin Trust (GBTC) experienced inflows for two consecutive days. Over the past four months, approximately $218 million was withdrawn from Grayscale’s spot Bitcoin exchange-traded fund (ETF) on a daily basis, resulting in outflows totaling over $17.5 billion. This trend was reversed on May 3 when GBTC received its first inflow of $63 million. This led to overall positive net inflows of $378.3 million in the spot BTC ETF market after seven days of outflows. GBTC’s inflows reached $66.9 million with its second inflow of $3.9 million on May 6.

Despite GBTC’s net outflow of $17.4 billion, the overall spot Bitcoin ETF market in the United States remains in positive territory. The iShares Bitcoin Trust (IBIT) managed by BlackRock attracted the most investments, with net inflows of $15.5 billion. Other major contributors to net inflows include Fidelity Investments’ Fidelity Wise Origin Bitcoin Fund (FBTC) with $8.1 billion, Cathie Wood’s ARK 21Shares Bitcoin ETF with $2.1 billion, and the Bitwise Bitcoin ETF Trust (BITB) with $1.7 billion. Currently, the cumulative flow of investments into the spot Bitcoin ETF market stands at nearly $11.8 billion.

In the United States, the Securities and Exchange Commission (SEC) has delayed its decision on spot Ether ETF applications from various service providers including BlackRock, Grayscale, and Invesco Galaxy. The applications, which were initially expected to be decided upon in May, have now been pushed back to July. The SEC explained that it requires more time to thoroughly consider the proposed rule changes and the issues raised in the applications. The commission’s decision applies to all prospective Ether ETF issuers, including Fidelity, Franklin Templeton, Hashdex, and ARK 21Shares, aligning with analysts’ predictions.

5 thoughts on “Grayscale Bitcoin ETF’s Journey to Recover $17.4B Outflows

  1. The SEC’s careful consideration of the proposed rule changes highlights their commitment to ensuring a robust regulatory framework.

  2. This is not surprising. Grayscale’s outflows were a clear indication that investors were losing faith in their Bitcoin Trust. πŸ’ΈπŸ“‰

  3. With the positive momentum in the spot Bitcoin ETF market, it’s clear that more people are recognizing the potential of cryptocurrencies. πŸš€

  4. Whatever the SEC’s decision may be, the future of cryptocurrencies remains bright. Let’s stay positive and continue to embrace this digital revolution!

  5. The cumulative flow of investments into the spot Bitcoin ETF market is impressive, but it’s concerning to see Grayscale losing out on such a large scale. They need to rethink their strategy.

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