Grayscale is now accumulating more Bitcoin than it is selling on the GBTC for Day 1. Following the news that the leading Bitcoin investment trust had liquidated all its assets, this recent development is part of a series of sell-offs that began when the ETF transitioned into a Bitcoin exchange-traded fund (ETF) in January.
GBTC experienced $63 million in inflows from eleven spot Bitcoin ETFs that launched on January 11th. According to data from Farsider, the outflow rate was approximately $17.5 billion. The only other fund to see inflows was the Bitcoin ETF, which received a daily inflow of $60.9 million, the highest ever for the EZBC.
Notable fund families like Fidelity invested an additional $102.6 million in the Fidelity Wise Origin Bitcoin Fund (FBTC), in addition to positions in the Bitwise Bitcoin Fund (BITB) and the Invesco Galazy Bitcoin ETF (BTCO) with investments of $33.5 million and $33.2 million respectively. Bitcoin supporters are convening a meeting to discuss the implications of this.
Anonymous cryptocurrency investor DivXman, known as a “primary source,” believes that Bitcoin Exchange Traded Funds are the primary driver of the bearish sentiment and pose a significant challenge to ETFs. However, there may be some positive momentum in the crypto markets soon.
In a statement to his 20,800 followers on Ledger, DivXman stated on May 3 that collective ETF operations, where they buy more BTC than miners can produce, may play a crucial role in reducing selling pressure and increasing demand.
Crypto Jelle, followed by 80,150 individuals, predicted in a tweet that a new all-time high for Bitcoin is imminent. The influx of $60 million into Grayscale’s ETF is a significant indicator. On the other hand, Lindsey crypto Traders are seeking answers to the question of why Bitcoin is responding to both outflows and inflows.
Bitcoin has experienced a 4.91% increase in the past 24 hours, reaching a price of $62,840 according to CoinMarketCap data. There are several reasons behind Grayscale’s continuous outflows since the launch of the eleven spot Bitcoin ETFs. One reason is the high premium fees of GBTC, which are over 2% compared to other ETFs. GBTC pays a fee of 1.5%, significantly lower than other ETFs that have fees below 1%.
Economically, Franklin Templeton currently offers the lowest 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.