Grayscale Bitcoin Trust’s shares jump after first inflow since January

(Reuters) – Shares of Grayscale Bitcoin Trust rose 5% in pre-market trading on Monday after the exchange-traded fund (ETF) that tracks the price of Bitcoin saw its first day of inflows since January.

The move marks a major milestone for GBTC, which has seen $17.46 billion in withdrawals since converting from a trust into an easily tradable ETF in January due to charging higher fees than rivals.

Some exits have also been linked to a wave of bankruptcies in the crypto industry over the past two years, as companies that have collapsed have withdrawn money from the fund to pay off creditors.

GBTC saw inflows of $63 million on Friday, according to investment management firm Farside Investors. According to the website, there is $18.08 billion in assets under management (AUM).

But its position as the largest spot bitcoin ETF by AUM is under threat from BlackRock’s iShares Bitcoin Trust, which manages $16.91 billion, according to its website.

Grayscale said in March that it would seek approval from the Securities and Exchange Commission to transfer some of GBTC’s assets to a new, lower-fee Bitcoin Mini Trust. However, the company has not yet determined the fees Mini Trust will charge.

Spot Bitcoin ETFs offer investors exposure to Bitcoin without having to hold Bitcoin directly. They were approved by the SEC in January after being rejected for a decade.

(Reporting by Niket Nishant in Bengaluru; Editing by Anil D’Silva)