Grayscale’s spot Bitcoin exchange-traded fund (ETF) experienced a brief surge in inflows before returning to outflows within just two days.
In May, the Grayscale Bitcoin Trust (GBTC) ETF saw inflows totaling $66.9 million, a welcome change after suffering outflows of over $17.5 billion in the 78 days since its launch on January 11. These investments occurred on May 3 and May 6, with $63 million and $3.9 million coming in each day, respectively.
However, the momentum of these inflows quickly dissipated. On May 7 and May 9, GBTC recorded outflows of $28.6 million and $43.4 million, effectively canceling out the recent investments. Grayscale was the sole spot Bitcoin (BTC) ETF issuer to report outflows on both of these days.
In contrast, the other nine Bitcoin ETFs approved by the United States Securities and Exchange Commission (SEC) either experienced positive inflows or remained steady during this period.
Since its launch, the Grayscale Bitcoin Trust has lost an average of $211 million per day. However, the inflows to the other ETFs have kept the overall balance positive at $11.7 billion.
All Bitcoin ETF issuers, except for GBTC, have positive inflow balances. Among them, BlackRock’s iShares Bitcoin Trust has attracted the highest investments, totaling nearly $15.5 billion to date.
Other notable issuers include Fidelity’s Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and Cathie Wood’s ARK 21Shares Bitcoin ETF, which currently have net inflows of $8.1 billion, $1.7 billion, and $2.2 billion, respectively.
VanEck CEO Jan VanEck, speaking exclusively to Cointelegraph at Paris Blockchain Week in April, stated that 90% of Bitcoin ETF inflows come from retail investors. He noted that while some Bitcoin whales and institutions have moved assets into ETFs, they were already exposed to Bitcoin.
However, VanEck anticipated that major institutional investments from banks and traditional firms would enter the market by May.
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