More money infused Grayscale Investment’s GBTC for the first time in a while. This occurred following a loss of more than $17.5 billion since the launch of Bitcoin ETFs in January.
Grayscale, for the first time, saw an increase in the amount of money entering Grayscale Bitcoin Trust (GBTC). This was the result of money leaving the account for four months after it became a Bitcoin exchange-traded fund (ETF) in January.
According to Farside preliminary data, Grayscale’s GBTC got $63 million in money coming in on May 3. This happened after losing about $17.5 billion since January 11, when Bitcoin ETFs started.
The largest-ever inflow of capital into Franklin Templeton’s Bitcoin ETF (EZBC) was $60.9 million.
The Wise Origin Bitcoin Fund, managed by Fidelity, saw the largest inflow of new money on the same day, totaling $102.6 million. Bitwise Bitcoin Fund received $33.5 million, while Invesco Galaxy Bitcoin ETF received $33.2 million.
The cryptocurrency community is curious about how these modifications would impact the $463,220 price of Bitcoin.
According to DivXman, a cryptocurrency investor, there is a lot of selling pressure on Bitcoin ETFs due to GBTC. He added that positive changes would begin to occur.
In a post on May 3, he gave his 20,800 X followers an explanation:
“That effectively means a significant decrease in sell pressure and an additional increase in demand while ETFs collectively are buying more BTC than miners can create.”
Crypto trader Jelle announced to his 80,300 followers that day that Bitcoin would soon reach an all-time high.
“60 million dollars worth of inflows for Grayscale’s ETF. The halving chop will come to an end, and 6-figure Bitcoin will follow shortly after.”
Bitcoin dealer Jordan Lindsey responded to the story by stating that it is evident that the price of the crypto fluctuates by both money inflows and outflows.
As per CoinMaketCap, the price of Bitcoin increased by 4.91% in the past 24 hours, reaching $62,840 at the time of publication.
Grayscale has been losing money since the launch of 11 spot Bitcoin ETFs. One reason is that GBTC charges higher fees, at 1.5%, while other ETFs charge less, all below 1%.
Franklin Templeton is the most affordable one right now, changing 0.19%. Another major factor is the significant amount of GBTC shares that struggling crypto companies like FTX and Genesis are selling to pay off debts.
On April 6, Cointelegraph reported that Genesis had sold roughly 36 million GBTC shares for $2.1 billion. They purchased 32,041 bitcoins using this money.
