Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin ETF, experienced a pleasant surprise on the last trading day of the week, as it recorded its first daily net inflow since its launch in January. The inflow amounted to $63 million, according to data provided by Farside Investors.
GBTC has long been regarded as a popular investment option for those interested in Bitcoin without directly buying cryptocurrencies. However, after being transformed into an ETF in January and the subsequent approval of nine rival Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), GBTC faced intense competition.
Due to its relatively higher fund management fees, GBTC has witnessed billions of dollars in investor withdrawals. As a result, the fund’s Bitcoin assets have decreased significantly, from over 600,000 before the ETF conversion to approximately 290,000 now. This represents a reduction of up to 50% of the fund’s Bitcoin assets, according to compiled fund data.
However, the recent net inflow of $63 million on the last trading day indicates a break in the trend of outflows for GBTC. Nevertheless, BlackRock’s iShares Bitcoin Trust (IBIT) poses a significant challenge to GBTC’s position as the largest Bitcoin ETF. While GBTC currently holds assets worth $18.1 billion, IBIT has assets worth $16.9 billion, making it a close contender for the top spot. It is worth noting that IBIT started trading with zero assets in January, while GBTC began with assets totaling over $26 billion.
Please note that the information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own research.
