Miraculously stops bleeding! Grayscale Bitcoin ETF sees first net inflow of 63 million Mg
After the United States approved the listing of multiple Bitcoin spot ETFs in January this year, the $GBTC product launched by Grayscale Investment Company (Grayscale) has been bleeding, with net outflows lasting as long as 4 months. However, just last Friday (5/3), $GBTC experienced its first net inflow, amounting to US$63 million, triggering heated discussions among netizens in the currency circle.
After the news came out, some netizens expressed disbelief and regarded it as the biggest news last week. Although some netizens did not understand why someone would want to buy $GBBTC with high management fees, there was a sudden influx of long-term bleeding products. Funding, most netizens think it is good news.
Source: X/BTC_Archive
Bloomberg ETF analyst Eric Balchunas also expressed surprise: "Oh my God, $GBTC has net inflows today! The 80-day streak of outflows is finally over. I had to double-check the data, but it's true."
Image source: X/Eric Balchunas
Data from Farside Investors, a British investment management company, shows that as of May 6, U.S. time, $GBTC has shown net inflows for two consecutive trading days, with an inflow of US$63 million on May 3 and an inflow of US$3.9 million on May 6.
Meanwhile, Fidelity’s $FBTC inflows have also rebounded significantly, with a net inflow of $102 million on May 3 and a net inflow of $99.2 million on May 6.
Source: Farside Investors
U.S. Bitcoin spot ETF fund flow analysis
Why Grayscale Bitcoin ETF Net Inflows Matter? traders say this
Anonymous trader DivXMaN offered his personal opinion on the news of net inflows into $GBTC. He first said that the main reason for outflows from $GBTC in the past was that its management fees were higher than those of other ETF issuers. Moreover, $GBTC was a general fund stock before it was converted into an ETF. Compared with the price of Bitcoin, there was a positive premium or a negative premium. After being converted into an ETF, there was room for arbitrage.
DivXMaN pointed out that after the launch of the Bitcoin spot ETF this year, the number of Bitcoins purchased through the ETF every day exceeded the newly issued Bitcoin supply, and $GBTC became the majority of the selling pressure in the previous months.
Now, if $GBTC starts to maintain a trend of net inflows, this would represent a significant drop in actual selling pressure and further increase in demand. Additionally, since Bitcoin’s fourth halving has been completed, the supply of newly issued Bitcoins has now been reduced by half.
Another trader, Jelle, took the news as a bullish sign, believing that the post-halving correction period is about to end and that six-figure ($100,000) Bitcoin prices will arrive soon.
Image source: X/Jelle
[Disclaimer] There are risks in the market, so investment needs to be cautious. Analyst comments are for reference only. Users should refer to more diverse indicators to judge whether to invest, and consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
