Key Points
- Grayscale’s spot bitcoin ETF breaks a 78-day streak of outflows with two consecutive days of net inflows.
- The change could be due to short-term trading or platform-specific preferences, according to Bloomberg ETF Analyst James Seyffart.
Grayscale’s spot Bitcoin ETF has broken its 78-day trend of outflows, registering net inflows for two consecutive days.
Understanding the Shift
James Seyffart, an ETF analyst from Bloomberg, suggests that the change might be due to several reasons. “One possibility could be a short-term tactical trade or pairs trade, where the fee is less relevant over shorter time frames,” Seyffart explained.
The Grayscale ETF, which was converted from its flagship GBTC fund into a spot bitcoin exchange-traded fund in January, had approximately $30 billion in assets under management at the time of launch. However, it then experienced billions of dollars in outflows. The ETF’s fee is higher than that of competing funds from companies like BlackRock and Fidelity.
Other Possible Causes
“Market makers using GBTC as part of their market-making strategy could be causing the inflows,” Seyffart said. “Alternatively, it could be someone from a platform where GBTC is the only approved vehicle for accessing spot bitcoin.”
Although Grayscale recording a few days of inflows may not significantly impact the “grand scheme,” Seyffart noted a recent slight decrease in the volume of capital flowing into U.S.-based spot bitcoin ETFs, coinciding with a more subdued bitcoin market.
