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Grayscale’s Bitcoin Trust (GBTC) experienced a second consecutive day of net inflows, marking a notable turnaround from the outflows exceeding $17.5 billion since the introduction of spot Bitcoin (BTC) ETFs in January.
According to data provided by Farside Investors, GBTC, which stands tall as the world’s largest spot Bitcoin ETF, saw $3.9 million in inflows on May 6. While this figure pales in comparison to the capital influx of others such as the Fidelity Wise Origin Bitcoin Fund (FBTC), it was sufficient to secure GBTC its second consecutive day of net inflows.
For context, Grayscale’s Bitcoin Trust recorded its first net inflow in over three months on May 3, after a series of consecutive outflows that saw it bleed out most of its Bitcoin balance and continuously impacted the daily performances of the broader spot Bitcoin ETF market.
Notably, GBTC had been facing net outflows, resulting in a loss of 33% of its Bitcoin holdings, since the conversion of its Bitcoin Trust into an ETF on January 10, as reported by crypto.news.
With the Grayscale Bitcoin ETF now contributing to net inflows, spot Bitcoin ETFs registered over $378.3 million of inflows on May 3, and a total of $217 million of inflows on May 6, with GBTC also among the contributors.
On May 6, top performers included FBTC and Ark 21Shares Bitcoin ETF (ARKB), recording inflows of $99.2 million and $75.6 million respectively. The BlackRock iShares Bitcoin Trust (IBIT) recorded an inflow of $21.5 million.
According to Bloomberg analyst Eric Balchunas, the spot ETF market is expected to witness a mix of capital inflows and outflows over time. He highlights that funds will generally exhibit two key traits: continued growth and a strong, committed investor base.
First time ever 1D flows all green, no red for the Bitcoin Bunch. Not going to spike the football like some did during the outflow period but will point out that over 95% of the ETF investors HOLD-ed during what was a pretty nasty and persistent downturn. Will same happen next… pic.twitter.com/3l3uwwmqGy
— Eric Balchunas (@EricBalchunas) May 6, 2024The inflows are reflecting Bitcoin’s (BTC) recent performance, which saw some downward trends over the past few days. Bitcoin dropped to as low as $57,000 before bouncing back and exceeding $65,000 in market value. However, BTC has dropped 1.59% over the last 24 hours and is trading at $64,400 at the time of writing.
