As a crypto investor with a few years of experience under my belt, I’ve seen my fair share of market volatility and fund inflows. The recent turn of events with Grayscale’s Bitcoin ETF (GBTC) has been intriguing to watch.
Two days after significant investments in Grayscale’s Bitcoin exchange-traded fund (ETF), large amounts of money flowed out, causing the rare infusions to disappear.
In May, the Grayscale Bitcoin Trust (GBTC) experienced inflows totaling $66.9 million after losing approximately $17.5 billion over a 78-day period starting from its launch on January 11. The investments were made on May 3 and 6, with daily contributions of around $63 million and $3.9 million respectively.
However, the inflow trajectory failed to maintain momentum in the coming days.
On May 7th and 9th, Grayscale’s GBTC recorded net withdrawals of approximately $28.6 million and $43.4 million respectively, effectively reversing recent investments. Among Bitcoin ETF issuers, only Grayscale reported such outflows during that period.
As a financial analyst, I’ve reviewed the reports of the remaining nine Bitcoin ETFs that have received approval from the U.S. Securities and Exchange Commission (SEC). During the specified period, all of these ETFs either recorded positive investments or showed no changes in their holdings.
The Grayscale Bitcoin Trust has seen an average daily loss of approximately $211 million since its inception. Yet, the trust’s overall balance remains positive at around $11.7 billion due to contributions from other participants.
As a crypto investor, I’d like to highlight that all Bitcoin ETFs except for Grayscale’s GBTC have positive inflow balances. Among them, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted the largest investments, totaling approximately $15.5 billion as of now.
Prominent investment funds, such as Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin ETF (ARKB), have reported significant inflows. Specifically, these funds have attracted net investments of $8.1 billion, $1.7 billion, and $2.2 billion respectively.
At the Paris Blockchain Week in April, VanEck CEO Jan VanEck conversed solely with CryptoMoon. He revealed that an impressive 90% of Bitcoin ETF investments originate from the retail sector. VanEck added, “Some Bitcoin magnates and institutions have transferred funds, but they had previously invested in Bitcoin.”
As a researcher, I’ve observed that VanEck expected significant investments from banks and traditional firms by May.
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2024-05-10 14:39