Bitcoin hits $63,000 following first-time inflows into Grayscale Bitcoin Trust

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Bitcoin (BTC) reclaimed the $63,000 mark on Binance late Friday as inflows into US spot Bitcoin exchange-traded funds (ETFs) made a comeback. Notably, Grayscale’s spot Bitcoin ETF, Grayscale Bitcoin Trust ETF (GBTC), ended its 80-day outflow streak – the fund attracted $63 million in inflows in today’s trading session, according to data from Coinglass.

At the time of writing, BTC is trading at around $62,900, up 6.5% in the last 24 hours, according to data from CoinGecko. The flagship crypto dipped below $57,000 on Wednesday ahead of the Fed’s interest rate decision and extended its correction after the FOMC meeting. However, the price started to recover earlier this morning as it broke through the key level of $61,000.

The GBTC fund is the largest spot Bitcoin ETF with over $18.7 billion in assets under management. Before converting from Bitcoin Trust to an ETF earlier this year, the fund held around 620,000 BTC.

GBTC has been under pressure from investors’ cash-out, particularly since the approval of competing spot Bitcoin ETFs in January. As of April 18, GBTC’s holdings had been slashed in half.

Bloomberg ETF analyst Eric Balchunas expressed surprise as GBTC reversed its long-term outflow trend, saying, “We’re so back.”

Holy crap $GBTC had inflows today. Their 80 day-ish streak is finally over. I had to run my eyes and double check the data but it’s true. https://t.co/I4TTU4q5Q1

— Eric Balchunas (@EricBalchunas) May 3, 2024

While GBTC has seen recent gains, persistent outflows over the last months have allowed competitors like BlackRock iShares Bitcoin Trust (IBIT) to narrow the gap. As of May 2, IBIT held $17.2 billion in Bitcoin AUM.

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