Grayscale Bitcoin Trust Sees First Inflows In 3 Months, Hong Kong ETF Market Gains Traction

Grayscale
Bitcoin
Trust
(GBTC),
the
world’s
largest
cryptocurrency
investment
vehicle,
has
experienced
a
notable
influx
of
investor
funds
for
the
first
time
since
the
January

approval
of
US
spot
Bitcoin
exchange-traded
funds
(ETFs). 

Grayscale
Bitcoin
Trust
Bounces
Back
With
Inflows

Data

compiled
by
Bloomberg
reveals
that
on
May
3,
Grayscale’s
Bitcoin
Trust

received
approximately
$63
million
in
net
inflows.
This
comes
after
net
outflows
totaling
around
$17.4
billion
since
the
trust’s
conversion. 

The
outflows
experienced
in
the
past
were
partially
linked
to
bankruptcies
in
the
crypto
industry,
as
defunct
companies
sought
to
repay
their


creditors

by
withdrawing
funds
from
the
trust. 

However,
Grayscale’s
position
as
the
largest
spot
Bitcoin
ETF
in
terms
of
assets
under
management
(AUM)
is
now
facing
competition
from
BlackRock’s


iShares
Bitcoin
Trust

(IBIT),
which
manages
$16.91
billion.

Grayscale
has
responded
to
the
changing
landscape
by
announcing
plans
in
March
to
seek
approval
from
the
Securities
and
Exchange
Commission
(SEC)
to
spin
off
a
portion
of
Grayscale’s
assets
into
a
new,
lower-fee
Bitcoin
Mini
Trust.
The
exact
fees
for
the
Mini
Trust
are
yet
to
be
determined.

Hong
Kong
Market
Surges
Amid
Growing
Demand

Eric
Balchunas,
an
ETF
expert
at
Bloomberg,

commented
on
the
recent
developments
in
the
Bitcoin
ETF
market.
He
noted
that
for
the
first
time,
there
were
positive


net
flows

without
any
outflows
among
Bitcoin
ETFs,
stating: 

Not
going
to
spike
the
football
like
some
did
during
the
outflow
period,
but
will
point
out
that
over
95%
of
the
ETF
investors
held
during
what
was
a
pretty
nasty
and
persistent
downturn.

Balchunas
emphasized
that
while
outflows
and
inflows
are
expected
to
occur,
the
track
record
suggests
that
ETFs
generally
witness
net
growth
and
demonstrate
resilient
investor
sentiment.

In
contrast
to
the
US
market,
Hong
Kong
has
also
made
advancements
in
the
Bitcoin


ETF
space.
Farside

data
suggests
that
the
launch
of
Bitcoin
and
Ethereum
ETFs
in
Hong
Kong
is
less
significant
than
their
US
counterparts. 

However,
a
new
HK
ETF
Flow
dashboard
has
been
introduced
due
to
popular
demand.
Balchunas
acknowledged
the
relatively
smaller
scale
of
the
Hong
Kong
ETF
market
compared
to
the
US
but
highlighted
the
local
market’s
rapid
growth.
He
stated:

The
HK
ETFs
at
$310
million
are
equivalent
to
$50
billion
in
the
US
market.
So,
in
that
regard,
these
ETFs
are
already
as
significant
in
their
local
market
as
the
US
ones
are
in
theirs.

As
of
the
time
of
writing,
the
leading
cryptocurrency
in
the
market
is
valued
at
$63,300
per
coin,
reflecting
a
1.4%
decrease
in
price
over
the
past
24
hours.
The
decline
occurred
after
an
unsuccessful
endeavor
to
establish
a
stable
position
above
the
$65,000
threshold
during
the
early
hours
of
Monday’s
trading
session.

Featured
image
from
Shutterstock,
chart
from
TradingView.com