Grayscale Bitcoin Trust (GBTC), the world’s biggest Bitcoin ETF, received a pleasant surprise on the last trading day of the week, with a net inflow of $63 million, according to data provided by Farside Investors. This marks the first daily net inflow since its launch in January.
GBTC has long been regarded as a popular investment option for those interested in Bitcoin, without directly purchasing the cryptocurrency itself. However, after being converted into an ETF in January, it faced tough competition from nine rival spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC).
Due to its relatively higher fund management fees, GBTC has experienced significant withdrawals from investors, resulting in a decrease of its Bitcoin assets from over 600,000 to approximately 290,000. This represents a reduction of up to 50% of the fund’s Bitcoin assets, according to compiled fund data.
The net inflow to GBTC on the last trading day of the week indicates a break in the streak of net outflows for the spot Bitcoin ETF. However, it now faces competition from BlackRock’s iShares Bitcoin Trust (IBIT), which is challenging GBTC for the title of the largest spot Bitcoin ETF. While GBTC currently holds assets worth $18.1 billion, IBIT has assets worth $16.9 billion. It’s worth noting that IBIT started trading with zero assets in January, while GBTC opened with over $26 billion in assets.
Investors should be aware that the information provided in this article does not constitute investment advice. Cryptocurrencies are highly volatile and carry risks, so investors should conduct their own research before making any decisions.
