Grayscale Bitcoin Trust (GBTC) finally saw more money coming in (inflows) than going out (outflows) for the first time in four months since it became an ETF in January, as they recorded $63 million in inflow after losing $17.5 billion since January.
Other Bitcoin funds also did well. Franklin Templeton’s ETF, EZBC, hit a record with $60.9 million inflows coming in. Fidelity’s FBTC got the most at $102.6 million, followed by Bitwise’s BITB with $33.5 million and Invesco Galaxy’s BTCO with $33.2 million.
This has got people talking about what it could mean for Bitcoin price. Some think that with GBTC seeing more money coming in, there might be less selling pressure overall, which could drive up demand for Bitcoin.
Pseudonymous crypto investor DivXman shared that “GBTC was the primary source of sell pressure across all spot Bitcoin ETFs since they went live in January 2024.”
He added, “That effectively means a significant decrease in sell pressure and additional increase in demand while ETFs collectively are buying more BTC than miners can create.”
Another trader named Jelle predicted that Bitcoin might soon hit a new all-time high, especially with all the money going to Grayscale’s ETF.
He added, “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.”
Some factors affecting the outflows of Grayscale’s GBTC since its launch would be its high fees compared to other ETFs available. GBTC’s fee is 1.5%, whereas other ETFs’ fees are below 1%. Franklin Templeton’s ETF (EZBC) has the lowest fee (0.19%) among all the other ETFs.
Could the recent inflow of investments into Bitcoin funds like GBTC signal a turning point for the cryptocurrency’s price? With GBTC recording its first inflows in months, coupled with record-breaking numbers in other funds, is a Bitcoin price surge on the horizon?
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