Key Points
- Grayscale’s Bitcoin ETF experienced significant outflows, reversing recent investment gains within two days.
- Other Bitcoin ETF issuers, excluding Grayscale, maintain positive inflow balances.
Grayscale’s Bitcoin exchange-traded fund (ETF) saw a sudden reversal in fortunes as recent investments quickly evaporated.
The Grayscale Bitcoin Trust (GBTC) had recorded inflows worth $66.9 million in May, after losing over $17.5 billion in the preceding 78 days since its launch on January 11.
Investment Fluctuations
The investments were concentrated on May 3 and 6, with $63 million and $3.9 million coming in on each day, respectively.
However, this upward trajectory was short-lived.
Outflows of $28.6 million and $43.4 million were recorded on May 7 and 9, effectively erasing the recent investments.
During this period, Grayscale was the sole Bitcoin ETF issuer to report outflows.
The other nine Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) either reported positive investments or none at all.
On average, the Grayscale Bitcoin Trust lost $211 million each day since its inception.
Despite this, contributions from other participants have kept the net balance at a positive $11.7 billion.
Positive Balances
It’s worth noting that all Bitcoin ETF issuers, with the exception of GBTC, have positive inflow balances.
Among them, BlackRock’s iShares Bitcoin Trust (IBIT) has attracted the highest investments, totaling nearly $15.5 billion so far.
Other notable issuers include Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB), which have net inflows of $8.1 billion, $1.7 billion and $2.2 billion, respectively.
In an exclusive interview at Paris Blockchain Week in April, VanEck CEO Jan VanEck stated that 90% of Bitcoin ETF inflows come from the retail sector.
He noted that while some Bitcoin whales and other institutions have moved some assets in, they were already exposed to Bitcoin.
VanEck also anticipated the arrival of significant institutional investments from banks and traditional firms by May.
