Grayscale Bitcoin ETF Ends 77-Days of Outflows, GBTC Inflows Begin

On Friday, May 3, the Bitcoin price jumped soon after the release of the US jobs data with nonfarm payrolls coming much less than expected thus increasing the chances of a dovish stand by the Fed. This helped to arrest the seven consecutive days of outflows from US Bitcoin ETFs with flows turning net positive once again. However, the most interesting part is that the outflows from the Grayscale Bitcoin ETF have finally stopped after the 77-day losing streak.

Grayscale Bitcoin ETF GBTC Records First Inflows

Ever since the launch in January 2024, the Grayscale Bitcoin ETF registered its first-ever inflows of $63 million on Friday. Although not sizeable, it is certainly a welcome development, giving GBTC investors some sigh of relief.

Yesterday, on May 3, the spot Bitcoin ETFs experienced a notable total net inflow of $378 million, marking the first positive inflow after seven consecutive days of outflows, as per data from Farside Investors. Additionally, the Grayscale ETF GBTC observed an uncommon single-day inflow of $63.0112 million, while the Fidelity ETF FBTC recorded single-day net inflows of $103 million.

Interestingly, BlackRock’s IBIT came at the second-last spot with inflows of just $12.7 million on Friday. It turns out that other market players are now slowly catching up with BlackRock, especially Fidelity. As it turns out, Hong Kong-based companies have also been buying the U.S. spot Bitcoin ETFs.

Yong Rong Asset Management, headquartered in Hong Kong, acquired $38 million worth of BlackRock iShares Bitcoin ETF (IBIT). This investment advisor now stands as the largest holder of IBIT, representing over 12% of reported holdings. High liquidity and low management fees in US spot Bitcoin ETFs have been attracting investors from across the globe.

Hong Kong ETF Market Scenario Improves

As of May 3rd, data from Sosovalue reveals that the cumulative net assets of three Bitcoin spot ETFs in Hong Kong have reached US$250 million, securing around 4,225 BTC.

Meanwhile, the total net assets of three Ethereum spot ETFs in the region stand at US$48.52 million, with holdings totaling approximately 16,000 ETH. These figures underscore the growing prominence and investor interest in cryptocurrency-based exchange-traded funds in the Hong Kong market.

In the last 24 hours, the Bitcoin price has bounced back by 6% and is currently trading at over $63,000 with a market cap of $1.250 trillion. The decline in Bitcoin from its record high of nearly $74,000 reached in March has raised concerns among traders. This suggests that some traders “may perceive risks in the global macro environment that the Fed or general investors are not yet acknowledging”.