Grayscale Bitcoin Trust (GBTC), the world’s largest spot Bitcoin ETF, received 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 historically been a popular investment option for those interested in Bitcoin without actually buying the cryptocurrency directly. However, following the approval of nine rival spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), GBTC faced tough competition after transforming into an ETF in January.
Due to its relatively higher fund management fees, GBTC has witnessed significant outflows, with investors withdrawing billions of dollars from the fund. As a result, the fund’s Bitcoin assets, which were over 600,000 before the transformation into a spot ETF, have now reduced to approximately 290,000, representing a reduction of up to 50% of the fund’s Bitcoin assets.
The recent net inflow of $63 million on the last trading day of the week indicates a positive turnaround for GBTC, which has experienced a streak of net outflows. However, GBTC now faces competition from BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), in the race 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, challenging GBTC’s position. It is worth noting that IBIT, which is currently in second place, started trading in January with zero assets, while GBTC opened with assets exceeding $26 billion.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.