Grayscale Bitcoin Trust (GBTC), the world’s largest cryptocurrency investment vehicle, has seen a notable influx of investor funds for the first time since January. approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Grayscale Bitcoin Confidence Rebounds with Inflows
Data compiled by Bloomberg reveals that on May 3, Grayscale’s Bitcoin Trust received approximately $63 million in net inflows. This follows net outflows totaling approximately $17.4 billion since the trust’s conversion.
Fund outflows recorded in the past were partly linked to crypto sector bankruptcies, as defunct companies sought to repay their holdings. creditors by withdrawing funds from the trust.
However, Grayscale’s position as the largest spot Bitcoin ETF by assets under management (AUM) now faces competition from BlackRock. iShares Bitcoin Trust (IBIT), which manages $16.91 billion.
Grayscale responded to the changing landscape by announcing plans in March to seek approval from the Securities and Exchange Commission (SEC) to spin off a portion of Grayscale’s assets into a new, lower-fee Bitcoin Mini Trust. The exact fees for the Mini Trust have yet to be determined.
Hong Kong market jumps on growing demand
Eric Balchunas, ETF expert at Bloomberg, commented on recent developments in the Bitcoin ETF market. He noted that for the first time there were positive results net flows without any exit between Bitcoin ETFs, stating:
I’m not going to blow up the football like some did during the runaway period, but I will point out that over 95% of ETF investors held securities during what was a pretty nasty and persistent downturn.
Balchunas pointed out that while outflows and inflows are expected, track record suggests that ETFs generally experience net growth and demonstrate a sense of investor resilience.
Unlike the US market, Hong Kong has also made progress in the Bitcoin space. ETF area. Other side data suggests that the launch of Bitcoin and Ethereum ETFs in Hong Kong is less significant than that of their US counterparts.
However, a new HK ETF Flow dashboard has been introduced due to popular demand.. Balchunas acknowledged the relatively smaller size of Hong Kong’s ETF market compared to the United States, but highlighted the rapid growth of the local market. He stated:
Hong Kong ETFs, worth $310 million, are equivalent to $50 billion in the US market. So, in this regard, these ETFs are already as important in their local market as US ETFs are in theirs.
At the time of writing, the market’s leading cryptocurrency is valued at $63,300 per coin, reflecting a 1.4% price drop over the past 24 hours. This decline occurred after an unsuccessful attempt to establish a stable position above the $65,000 threshold during the early hours of Monday’s trading session.
Featured image from Shutterstock, chart from TradingView.com
