The first net flow after the start
Grayscale Investments has had a first day of net positive returns for its Grayscale Bitcoin Trust Exchange Traded Fund (ETF). This comes after a nearly four-month streak since switching to the Bitcoin ETF position in January.
On May 3, Greyscale's Bitcoin Trust (GBTC) recorded $63 million in net income after an estimated $17.5 billion in outflows since its January 11 launch of 11 Bitcoin ETFs, according to Farside's preliminary data.
Among other funds reported so far, Franklin Templeton's Bitcoin ETF saw an all-time high of $60.9 million.
Meanwhile, Fidelity's Wise Origin Bitcoin Fund led the day's gains with $102.6 million, followed by BitWise Bitcoin Fund with $33.5 million and Invesco Galaxy Bitcoin ETF with $33.2 million.
The crypto community has been speculating on how the event will affect the price of Bitcoin (BTC).
Anonymous crypto investor Divxman told his followers that GBTC is the “main source” of selling pressure for Bitcoin ETFs everywhere, but the “tide” may be turning.
“This effectively means a significant reduction in selling pressure and a further increase in demand with ETFs buying more BTC than collective miners can generate,” he explained in a May 3 post to his 20,800 X followers.
Crypto trader Jelle predicted a new all-time high for Bitcoin on the same day to his 80,300X followers.
“$60 million in revenue for Greyscale's ETF. The halving ends, and the 6-digit bitcoin will follow shortly after.
Related: Greyscale spot Bitcoin ETF ‘halves' before BTC declines
Meanwhile, crypto trader Jordan Lindsey responded to the news, pointing out that Bitcoin's price is “reacting to both flows and inflows.”
According to data from CoinMarketCap, the price of Bitcoin increased by 4.91% to $62,840 in the last 24 hours.
11 Points Bitcoin ETF has contributed to Grayscale's continuous flow since its launch. One reason is GBTC's high fees compared to other ETFs available. GBTC's fee is 1.5%, while other ETF fees are less than 1%.
The cheapest currently is Franklin Templeton, with a fee of 0.19%. Another major driver is bankrupt crypto companies FTX and Genesis selling large amounts of GBTC shares in an effort to pay off creditors.
On April 6, Cointelegraph reported that Genesis issued approximately 36 million GBTC shares for $2.1 billion to purchase 32,041 bitcoins.
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