Bitcoin ETFs Saw First Net Inflow Since January 2024

in hive-175254 •  7 months ago 

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The Bitcoin ETF with the highest assets, which is the Grayscale Bitcoin Trust (GBTC); experienced a reasonable money inflow. This money came in from fresh investors, and since January 2024 - this marked the first inflow of money to Grayscale Bitcoin ETF.

It was about $63 million in value, and it came into Grayscale Bitcoin ETF, on the 2nd of May 2024. Investors who did not necessarily want to invest directly into Bitcoin as a cryptocurrency, found it more interesting to invest in GBTC. But, due to the launching of about 9 other spot Bitcoin EFTs in January 2024, GBTC experienced a lot of competition.

As a result of the higher fees that GBTC charged, lots of investors moved out their billions of dollars. This caused GBTC to experience 78 days of consistent money outflows, until May 2nd 2024, when it experienced its first inflow since January. At the moment, in assets GBTC has about $18 billion; a significant fall from about $26 billion.

While IBIT, the Bitcoin ETF holding second position, had nothing in January 2024, but has about $16.9 billion in assets presently. On the 3rd of May 2024, Bitcoin ETFs saw an overall money inflow of about $378 million; which was the first overall inflow experienced after 7 days of consistent outflows. In which case, Grayscale ETF, experienced $63 million on a 1-day inflow.

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It seems like at the end of the day, the world of Bitcoin didn't go the way we are expecting it will go actually

Thanks for commenting.