Bitcoin
Grayscale Bitcoin Trust ETF Breaks 11-Week Exit Streak With $63 Million Inflows
Grayscale Bitcoin Trust ETF Breaks 11-Week Exit Streak With $63 Million Inflows
After 11 consecutive weeks of outflows, the Grayscale Bitcoin Trust ETF (GBTC) finally saw a positive gain of $63 million. Continued withdrawals by investors have been a result of the approval and subsequent popularity of competing spot Bitcoin ETFs since January, causing GBTC outflows to significantly impact the emerging space.
Despite recent exits, GBTC still remains the largest Bitcoin spot ETF, managing over $18.7 billion in assets and holding around 297,000 Bitcoin. However, consistent outflows have allowed newer competitors to close the gap, with the BlackRock iShares Bitcoin Trust (IBIT) accumulating $17.2 billion in assets as of Tuesday. To offset its losses, Grayscale proposed the introduction of a “mini” Bitcoin ETF with reduced fees, aiming to increase its competitiveness.
The positive news for Grayscale comes on the heels of a bad day for its competitor, investment giant BlackRock’s IBIT ETF. Although IBIT has grown to $15.4 billion since its launch on Wall Street, it contracted by $37 million the day before, according to Farside Investors. Furthermore, all ETFs collectively witnessed outflows of $563 million, marking the worst day in their history due to a drop in the price of BTC on Wednesday.
The news of GBTC inflows generated surprise and excitement in the market. Bloomberg ETF analyst Eric Balchunas expressed his astonishment on Twitter, stating“Holy shit, $GBTC had inflows today. Its 80 day streak is finally over. I had to run my eyes and check the data, but it’s true.”