In a surprising turn of events, Grayscale Bitcoin Trust (GBTC) has seen its first inflow after experiencing significant daily outflows since its launch. Grayscale’s Spot Bitcoin ETF broke an 82-day streak of outflows by recording over $60 million in inflows on May 3. Data from Farside, an investment management firm, revealed that Grayscale’s ETF received approximately $63 million in inflows, with other Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust also experiencing inflows.
This unexpected development comes after a period where 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, faced massive outflows totaling over $563.7 million in a single day. The market downturn was potentially triggered by the Federal Reserve’s decision to keep rates unchanged. Despite recent declines, Bitcoin has surged by 6.36% in the past 24 hours, trading above $60,000.
Grayscale’s outflows were attributed to various factors, including high annual management fees and connections with insolvent cryptocurrency companies. The firm’s turnaround has left experts like Bloomberg senior analyst Eric Balchunas surprised, showcasing the unpredictable nature of the crypto market.
Vocabulary List:
- Inflow (noun): The act of money or resources coming into a financial entity.
- Outflow (noun): The act of money or resources going out of a financial entity.
- Streak (noun): A continuous period or series of success or a particular quality.
- Inflows (noun): The plural form of inflowreferring to multiple instances of money or resources coming in.
- Decisions (noun): A conclusion or resolution reached after consideration.
- Unpredictable (adjective): Not able to be predicted uncertain.
