The Grayscale Bitcoin Trust (GBTC) recorded capital inflows for the first time after 82 consecutive days of losses.
According to data from the investment company Farside Investors, on May 3rd, Grayscale’s spot ETF on Bitcoin saw inflows of $63 million. The trend reversal comes after a capital outflow of $17.46 billion following the approval of the conversion to ETF.
Currently, GBTC holds a total of approximately 291,000 bitcoins, while BlackRock’s IBIT owns around 274,000 bitcoins.
Also on May 3rd, IBIT received $12.7 million, while Fidelity’s FBTC recorded inflows of $102.6 million.
Several factors have contributed to the ongoing outflows experienced by GBTC, including high management fees compared to other issuers and ties to failed digital asset companies. Grayscale’s 1.5% fee is the highest among all Bitcoin ETFs in the United States. Some of the outflows were also caused by sales from the failed FTX exchange, which liquidated approximately $1 billion of GBTC. Additional outflows were generated by the sale of nearly 36 million GBTC shares by the cryptocurrency lending company Genesis, which then purchased 32,041 bitcoins.