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Grayscale’s Bitcoin Trust ETF Records Positive Inflows
After a prolonged period of continuous outflows, Grayscale’s Bitcoin Trust exchange-traded fund (ETF) recorded its first day of net positive inflows.
Key Inflows in the Crypto Market
- Grayscale’s Bitcoin Trust (GBTC) witnessed $63 million in net inflows on May 3.
- Franklin Templeton’s Bitcoin ETF saw record high inflows of $60.9 million.
- Fidelity’s Wise Origin Bitcoin Fund led with $102.6 million in inflows.
- Bitwise Bitcoin Fund followed with $33.5 million, and Invesco Galaxy Bitcoin ETF with $33.2 million.
Speculations in the Crypto Community
The crypto community speculates on how these inflows might impact Bitcoin’s price. Pseudonymous investor DivXman hinted at a possible shift in dynamics, suggesting increased demand and decreased sell pressure.
Market Reactions and Price Surge
Crypto trader Jelle predicts a new all-time high for Bitcoin, citing significant inflows into Grayscale’s ETF as a bullish indicator. Jordan Lindsey highlights Bitcoin’s price response to both outflows and inflows. Bitcoin surged by 4.91% to reach $62,840.
Factors Contributing to Outflows
- GBTC’s high fees at 1.5% compared to other ETFs with fees below 1%.
- Large amounts of GBTC shares sold off by bankrupt crypto firms FTX and Genesis to repay creditors.
Speculations on GBTC Outflows
Market observers speculate on when the “Bitcoin bleed” in GBTC might end. Analysts believed the outflows could be nearing their conclusion, but bankruptcy courts permitted Genesis to liquidate shares, impacting the ongoing outflows.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
