Grayscale’s Bitcoin ETF Records Inflows After Several Months Suffering Losses
The first daily increase in investor money was seen in the Grayscale Bitcoin Trust (GBTC), the largest bitcoin ETF by assets, according to Farside Investors. This marks a shift from previous declines since its launch in January.
On Friday, $63 million in net inflow was recorded, according to Farside‘s calculations. Previously, GBTC had been the top choice for traditional investors looking to invest in Bitcoin without directly purchasing the cryptocurrency.
However, in January nine new spot Bitcoin ETFs were introduced, making it easier to trade. This led to competition for GBTC, which has higher fees, resulting in significant amounts of money being withdrawn.
As a result, the fund’s holdings of Bitcoin dropped from over 600,000 to around 290,000, as reported by CoinDesk. To compete with the new spot Bitcoin ETFs, Grayscale announced plans for a mini Bitcoin ETF with a lower fee of 0.15%, the lowest among its competitors.
Despite this, BlackRock’s iShares Bitcoin Trust (IBIT) is quickly catching up to GBTC in terms of assets, currently with $16.9 billion compared to GBTC’s $18.1 billion. Unlike GBTC, IBIT started at zero in January, while
