Grayscale Spot Bitcoin ETFs See $63 Million of Inflows


Grayscale’s spot Bitcoin ETF, after experiencing a continuous outflow streak since its launch on January 11, saw a notable turnaround with $63 million in new inflows. According to reports, this significant shift is its first inflow since its conversion. The ETF’s reversal in fortunes is seen as a positive development, ending a challenging 78-day stretch of outflows.

Grayscale is Beginning to Gain Traction

According to Farside Investors and CoinGlass data, Grayscale’s higher fee fund generated $63 million in inflows. However, the $63 million inflow signals a shift in investor sentiment towards the GBTC ETF, possibly driven by market conditions and evolving perceptions of Bitcoin’s potential. Likewise, the recent trend reversal may indicate a turning point for the ETF, with investors reassessing their positions and outlooks.

In another tweet, Bloomberg ETF analyst Eric Balchunas expressed his shock. He confirmed that he had to double-check the data to confirm. The ETF store president Nate Geraci also confirmed that the GBTC outflow streak is over. “The Bitcoin Shining” can now be hung in the museum, he added showing the GBTC flow chart.

As of January 11, GBTC had 619,220 BTC ($18.3 billion) in assets under management, which has since decreased by 53% to 291,239 BTC.

Spot BTC ETFs Gaining Traction

In contrast, other crypto funds have been gaining traction. BlackRock’s IBIT has accumulated over $6.6 billion in investments since its launch, closely followed by Fidelity’s FBTC with over $4.7 billion in capital. The third position is secured by ARK 21Shares, attracting inflows of $1.4 billion over the same period.

Meanwhile, analysts suggest that investors have been rebalancing their portfolios and mitigating towards Bitcoin ETFs with lower fees. However, with a 1.5% annual management fee, Grayscale BTC ETF has faced competition from other issuers charging as little as 0.19%.

Six Days of Inflows in Spot Bitcoin ETF

This report comes when the US spot Bitcoin ETF industry recorded six straight days of net positive inflows totaling nearly $715 million. However, the inflows were recorded majorly in BlackRock and Fidelity’s offerings, as pointed out by BitMEX.

Additionally, the six straight days of inflows come after four days of outflows from the spot Bitcoin ETFs between January 22 and 25, when GBTC outflows peaked. Grayscale recorded its second-lowest outflow day on February 2 at $144.6 million.

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