Bullish! Grayscale’s Mini Bitcoin ETF Nets Over $191M in Inflow

Grayscale, a leading asset management company, has seen a substantial inflow of over $191 million in its newly launched Bitcoin exchange-traded fund (ETF) spin-off. This marks the highest ETF inflow on August 1st. In contrast, Grayscale’s original Bitcoin ETF product, GBTC, experienced an outflow of $71.3 million on the same day.

Grayscale’s BTC Sees Largest Inflow

With a net inflow of $191 million, Grayscale’s BTC has shown an early sign of acceptance among U.S.-based investors despite being launched two days ago. Interestingly, its market inflow represents the highest in the past 24 hours. BlackRock’s IBIT follows with an inflow of $25.9 million.

In contrast, other Bitcoin ETF issuers saw outflows worth over $166.4 million. Following Grayscale’s most significant loss of $71.3 million, Fidelity’s FBTC followed with $48.4 million worth of BTC withdrawn. Other companies that saw outflows in their Bitcoin ETF products were Bitwise (BITB), ARK 21Shares (ARKB), and VanEck (HODL).

These outflows have occurred frequently over the past few weeks and have partly contributed to Bitcoin’s price drop. The leading cryptocurrency sold for $64,700 at the time of writing, representing a 3.8% drop within the past week.

Grayscale Climbs Back Up

The investment giant launched the Grayscale Bitcoin Mini Trust (BTC) on July 31st as a spin-off of its existing GBTC product. This strategic move allows BTC and GBTC to exist independently with varying traits, giving investors more investment choices. Unlike GBTC, which held the highest trading fee of 1.5%, BTC attracts investors with the cheapest cost of 0.15%, breaking the record of Franklin Bitcoin ETF (EZBC), the investment vehicle with the former cheapest fee of 0.19%.

Upon launch, Grayscale revealed that investors “will automatically receive one share of the spin-off fund for each share of the original fund” without tampering with their portfolio valuation.

The current metrics of the company’s Mini Trust may likely be its way back up in the rank of Bitcoin ETF issuers.