At Last! Grayscale’s Spot Bitcoin ETF Records First Inflow Since Launch 

Grayscale’s spot Bitcoin exchange-traded (ETF) fund has seen its first net positive inflow since trading started on January 11th. According to data from Farside, Grayscale’s Bitcoin Trust (GBTC) recorded a $63 million net inflow on Friday, May 3rd.

The latest development comes after the financial product recorded a whopping $17.5 billion outflows since its launch about four months ago.

Analysts had attributed GBTC’s outflow trend to its higher-than-average market fees. While Grayscale charges 1.5% for its products, all its competitors receive below 1%.

More Inflows Incoming?

While Grayscale previously defended this high fee decision – citing the product’s liquidity and track record of operating successfully – it later changed its stance, saying that it will reduce this fee over time (In the coming months).

With a reduced fee, the fund is expected to continue to see increased positive inflows.

Meanwhile, aside from Grayscale, other ETFs recorded inflows on May 13th. Fidelity Wise Origin Bitcoin Fund (FBTC) saw the highest inflow on that day , with $102.6 million. Trailing FBTC is Bitwise Bitcoin Fund (BITB) with $33.5 million and Invesco Galaxy Bitcoin ETF (BTCO) with $33.2 million. 

Other products that saw inflows include Franklin Templeton’s Bitcoin ETF (EZBC), which received $60.9 million; Valkyrie Bitcoin Fund (BRRR), which received $35.6 million; ARK 21Shares Bitcoin ETF (ARKB); which received $28.1 million, and VanEck Bitcoin Trust (HODL); which received $8.7 million. The total inflows received on that day amounted to $365.6 million.

BTC Jumps 7%

While bitcoin (BTC) has been struggling over the past few weeks, the latest positive inflows have helped push up the flagship cryptocurrency’s price. BTC gained 7% over the last 24 hours and traded at $63,956 at the time of writing this line. This shows that the increased demand for this Bitcoin-related product often leads to a rise in the price of BTC. 

Analysts believe that with more potential positive inflows, BTC could see a new all-time high (ATH) in the near future.