Bitcoin Pops Above $64,000 After Grayscales GBTC Snaps 78-Day Outflow Streak With $63M In New Money
For the first time since going live on January 11, the Grayscale GBTC, the largest spot Bitcoin exchange-traded fund (ETF) by assets, drew in fresh investor cash.
Bitcoin surged back above the $64,000 mark as Grayscales converted GBTC ETF posted $63 million in net inflows on Friday after bleeding for nearly 80 days.
Grayscale Breaks 78-Day Losing Streak
Grayscales GBTC recorded its first-ever daily net inflows on May 3, snapping a consecutive streak of outflows.
GBTC pulled in $63 million in inflows after bleeding billions of dollars. The higher-fee fund has seen many investors cashing out since competing spot BTC ETFs were greenlighted in January. GBTCs $17.5 billion cumulative outflows have singlehandedly weighed down the whole budding space.
Popular crypto investor DivXman observed in a Friday post that the GBTC was the primary source of selling pressure across all spot Bitcoin ETFs, but the tides could be turning.
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, he posited.
GBTC now has $18.3 billion, or 291,239 BTC, in assets under management a figure that has dropped over 50% from roughly 629,220 BTC. BlackRock iShares Bitcoin Trust (IBIT) is coming for GBTCs crown of largest Bitcoin ETF, with $17.2 billion as of Tuesday.
At press time, BTC is trading for around $64,432, up 9.3% in the last 24 hours, according to data from CoinGecko. The premier cryptocurrency slipped below $57,000 on Wednesday just before the Federal Reserves interest rate decision and extended its slump after the FOMC meeting. However, the price started to recover on Friday as it ticked back above $61,000.
It remains to be seen whether the turnaround in flows for GBTC is a precursor of an incoming new bull run for Bitcoin.
Text source: ZyCrypto
