Grayscale Bitcoin Trust Sees First Inflows Since US ETFs Were Approved

(Bloomberg) — The world’s largest cryptocurrency investment vehicle saw a net inflow of investor money for the first time since U.S. exchange-traded funds holding the digital asset were allowed in January.

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The $18.1 billion Grayscale Bitcoin Trust, or GBTC, received nearly $63 million on May 3, according to data compiled by Bloomberg. The ETF has seen net outflows of approximately $17.4 billion since its conversion from a trust.

Despite leading an effort to win approval from U.S. regulators through a legal challenge, investors appear to have shifted their holdings from GBTC to new, lower-cost funds offered by companies such as BlackRock and Fidelity. GBTC charges a 1.5% management fee, while most of its peers charge less than 0.3%.

“I think it will be more difficult to predict which way the flows will go, now that the tide is turning from exits to inflows,” said Amrita Nandakumar, head of Vident Investment Advisory. “I’ll be curious to see how closely tied this is to the price of Bitcoin or what other Bitcoin ETF issuers are doing to attract Grayscale investors.”

A spokesperson for Grayscale did not immediately respond to a request for comment.

Grayscale has also laid out plans for a Bitcoin Mini Trust that would be physically backed by the cryptocurrency and traded under the ticker BTC. If approved, the ETF would be seeded with an unspecified percentage of assets in GBTC.

Grayscale CEO Michael Sonnenshein was asked on Bloomberg Television in April when GBTC fees might drop, and in response he noted that the firm had filed for a “mini” version of the ETF.

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