On May 20, Grayscale’s GBTC fund had an inflow of $9.3 million. While this is much lower than rival funds from BlackRock or Fidelity, it is a milestone for Grayscale, which has hemorrhaged capital since it converted the fund to a spot Bitcoin ETF in January.
It is the first time since mid-Janaury that GBTC has seen four inflow days in a row, and it only registered its first reversal of outflows on May 3.
The total GBTC inflow over the past four trading days was $72.5 million, according to Farside Investors.
Nevertheless, GBTC has shed 53% of its assets under management over the past four months totaling a whopping 330,610 BTC worth around $23.5 billion at current prices.
In light of that exodus, observers have envisaged something similar happening to its Ethereum fund should the SEC approve its conversion to a spot ETH ETF on or before the deadline of June 23.
The firm’s ETHE fund, which currently holds around $10 billion worth of ETH in assets under management, is trading at a discount to net asset value of roughly -20%, according to Ycharts. This discount is likely to be wiped out if the SEC grants approval to convert the fund to a spot ETH ETF (as it was when the BTC fund conversion was approved).
Moreover, a similar exodus from this fund to take profits or rebalance portfolios to rivals with lower fees could see around 1.3 million ETH exiting the fund.
However, Bitcoin prices rallied 70% since the approval of spot ETFs despite the exodus from GBTC.
If a similar thing happens with ETH, the asset could potentially surge to $6,000 over the next few months.
The total inflow for all spot Bitcoin ETFs for May 20 was $237.2 million. Over the past five trading days, more than $1.1 billion has been poured into BTC ETFs.
Ark 21 Shares led the way yesterday with an inflow of $68.3 million. BlackRock and Fidelity were not far behind with $66.4 million and $64 million, respectively.
The ETF inflow surge comes as crypto market capitalization hit a six-week high of $2.74 trillion on May 21, primarily driven by Ethereum.
The post Grayscale GBTC Notches 4 Inflow Days But ETHE Outflow Concerns Mount appeared first on CryptoPotato.
It is the first time since mid-Janaury that GBTC has seen four inflow days in a row, and it only registered its first reversal of outflows on May 3.
The total GBTC inflow over the past four trading days was $72.5 million, according to Farside Investors.
ETHE Outflow Concerns
Nevertheless, GBTC has shed 53% of its assets under management over the past four months totaling a whopping 330,610 BTC worth around $23.5 billion at current prices.
In light of that exodus, observers have envisaged something similar happening to its Ethereum fund should the SEC approve its conversion to a spot ETH ETF on or before the deadline of June 23.
The firm’s ETHE fund, which currently holds around $10 billion worth of ETH in assets under management, is trading at a discount to net asset value of roughly -20%, according to Ycharts. This discount is likely to be wiped out if the SEC grants approval to convert the fund to a spot ETH ETF (as it was when the BTC fund conversion was approved).
Moreover, a similar exodus from this fund to take profits or rebalance portfolios to rivals with lower fees could see around 1.3 million ETH exiting the fund.
However, Bitcoin prices rallied 70% since the approval of spot ETFs despite the exodus from GBTC.
If a similar thing happens with ETH, the asset could potentially surge to $6,000 over the next few months.
Bitcoin ETF Flows Update
The total inflow for all spot Bitcoin ETFs for May 20 was $237.2 million. Over the past five trading days, more than $1.1 billion has been poured into BTC ETFs.
Ark 21 Shares led the way yesterday with an inflow of $68.3 million. BlackRock and Fidelity were not far behind with $66.4 million and $64 million, respectively.
The ETF inflow surge comes as crypto market capitalization hit a six-week high of $2.74 trillion on May 21, primarily driven by Ethereum.
The post Grayscale GBTC Notches 4 Inflow Days But ETHE Outflow Concerns Mount appeared first on CryptoPotato.
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