Grayscale Bitcoin ETF erases $66.9M of incoming funds within 48 hours

Grayscale’s spot Bitcoin exchange-traded fund (ETF) experienced a brief period of inflows in May, but these were quickly offset by outflows. The Grayscale Bitcoin Trust (GBTC) ETF had been struggling since its launch on January 11, losing over $17.5 billion in 78 consecutive days. However, on May 3 and 6, the fund saw inflows of $63 million and $3.9 million respectively, totaling $66.9 million for the month. Unfortunately, this positive trend did not last long.
On May 7 and 9, GBTC recorded outflows of $28.6 million and $43.4 million, reversing the recent investments. Grayscale was the only spot Bitcoin ETF issuer to report outflows on these days. In contrast, the other nine Bitcoin ETFs approved by the United States Securities and Exchange Commission (SEC) either had positive inflows or no investments during this period.
Since its launch, the Grayscale Bitcoin Trust has been losing an average of $211 million per day. However, the inflows to other ETFs have kept the net balance positive at $11.7 billion. All Bitcoin ETF issuers, except GBTC, have positive inflow balances. Among them, BlackRock’s iShares Bitcoin Trust has attracted the most investments, totaling nearly $15.5 billion. Other notable issuers include Fidelity’s Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and Cathie Wood’s ARK 21Shares Bitcoin ETF, with net inflows of $8.1 billion, $1.7 billion, and $2.2 billion respectively.
VanEck CEO Jan VanEck, speaking at Paris Blockchain Week in April, revealed that the retail sector contributes 90% of Bitcoin ETF inflows. While some Bitcoin whales and institutions have invested in the asset, they were already exposed to Bitcoin. VanEck anticipated that major institutional investments from banks and traditional firms would arrive by May.