Grayscale Bitcoin ETF Ends 77 Days of Outflows, GBTC Inflows Begin
On Friday, May 3, the Bitcoin price jumped immediately after the release of US employment data; Nonfarm payrolls data came in much lower than expected, raising the possibility of a dovish Fed stance. This helped stem seven consecutive days of outflows from US Bitcoin ETFs, with flows turning net positive once again. But the most interesting part is that the outflows from the Grayscale Bitcoin ETF have finally stopped after a 77-day losing streak.
Grayscale Bitcoin ETF GBTC Records First Entries
Grayscale Bitcoin ETF recorded its first inflow of $63 million on Friday since its launch in January 2024. Although not very large, this is definitely a welcome development that gives GBTC investors a sigh of relief.
According to data from Farside Investors, on May 3 spot Bitcoin ETFs experienced a significant total net inflow of $378 million; this was the first positive entry after seven consecutive days of outflows. Additionally, Grayscale ETF GBTC observed an unusual single-day inflow of $63.0112 million, while Fidelity ETF FBTC recorded a single-day net inflow of $103 million.
Interestingly, BlackRock’s IBIT came in second to last with just $12.7 million in inflows on Friday. It turns out that other market players, especially Fidelity, are now slowly catching up with BlackRock. It looks like Hong Kong-based companies are also buying US spot Bitcoin ETFs.
Yong Rong Asset Management, headquartered in Hong Kong, purchased BlackRock iShares Bitcoin ETF (IBIT) worth $38 million. This investment advisor is currently the largest holder of IBIT, representing more than 12% of reported assets. The high liquidity and low management fees in US spot Bitcoin ETFs attract investors from around the world.
Hong Kong ETF Market Scenario Is Improving
As of May 3, data from Sosovalue reveals that the cumulative net assets of three Bitcoin spot ETFs in Hong Kong reached US$250 million, securing approximately 4,225 BTC.
Meanwhile, the three Ethereum spot ETFs in the region had total net assets of $48.52 million and total assets of approximately 16,000 ETH. These figures highlight the growing importance and investor interest in cryptocurrency-based exchange-traded funds in the Hong Kong market.
Bitcoin price has recovered 6% in the last 24 hours and is now trading above $63,000 with a market cap of $1.250 trillion. Bitcoin’s decline after reaching a record level of approximately $74,000 in March caused concerns among investors. This suggests that some traders “may perceive risks in the global macro environment that the Fed or general investors have not yet acknowledged.”
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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