The Grayscale Bitcoin Trust exchange-traded fund (ETF) has seen net positive inflows for the first time according to Grayscale Investments.This follows almost four months of nonstop withdrawals following its January conversion to a spot Bitcoin ETF.According to Farside early statistics, Grayscale’s Bitcoin Trust (GBTC) saw net inflows of $63 million on May 3 after recording withdrawals of over $17.5 billion since the introduction of 11 spot Bitcoin ETFs on January 11.Franklin Templeton’s Bitcoin ETF saw $60.9 million in inflows, the biggest of any fund tracked thus far.With $102.6 million, Fidelity’s Wise Origin Bitcoin Fund led the day’s inflows. Bitwise Bitcoin Fund came in second with $33.5 million, while Invesco Galaxy Bitcoin ETF came in third with $33.2 million.
The crypto community has been speculating how the turn in events might impact the price of Bitcoin
The “primary source” of sell pressure on all spot Bitcoin ETFs, according to pseudonymous cryptocurrency trader DivXman, is the GBTC, but “the tides” may be turning.In a tweet from May 3, he informed his 20,800 X followers, “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create.”On the same day, cryptocurrency trader Jelle informed his 80,300 X followers that a new all-time high for Bitcoin was imminent.
“60 million dollars worth of inflows for Grayscale’s ETF. The halving chop will come to an end, and 6-figure Bitcoin will follow shortly after.”
In response to the news, cryptocurrency trader Jordan Lindsey mentioned the price of Bitcoin and stated that it is “obviously responding both to outflows and inflows.”As of the time of writing, the price of bitcoin was $62,840, up 4.91% from the previous day, according to data from CoinMarketCap.
Grayscale’s continuous withdrawals since the debut of the 11-spot Bitcoin ETFs were caused by a number of factors.The high costs of GBTC in comparison to other ETFs on the market is one factor.While the fees for other ETFs are less than 1%, GBTC charges 1.5%.Franklin Templeton is currently the least expensive, charging 0.19%.The sale of significant quantities of GBTC shares by bankrupt cryptocurrency companies FTX and Genesis in an attempt to pay off creditors is another major factor.According to a Cointelegraph story from April 6, Genesis sold almost 36 million GBTC shares for $2.1 billion in order to buy 32,041 Bitcoin.