Reported earnings from Grayscale Investments
Amid volatility in the cryptocurrency market, earnings from Grayscale Investments have been reported.
Grayscale Investments’ earnings enable first revenues for the Grayscale Bitcoin Trust (GBTC).
Grayscale Investments’ first earnings come after nearly four months of continuous outflows since its conversion to a Bitcoin Exchange Traded Fund (ETF) in January.
On May 3, Grayscale’s GBTC recorded USD 63 million in inflows after recording approximately USD 17.5 billion in outflows since the launch of the 11 spot Bitcoin ETFs on Jan. 11, according to preliminary data from Farside data.
Among the other funds reported so far, Franklin Templeton’s Bitcoin ETF (EZBC) recorded its largest inflow with USD 60.9 million.
Meanwhile, Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the day’s inflows with USD 102.6 million, followed by Bitwise’s Bitwise Bitcoin Fund (BITB) with USD 33.5 million and Invesco’s Galaxy Bitcoin ETF (BTCO) with USD 33.2 million.
Overall, it has been a positive day for the cryptocurrency-related funds market.
Reported earnings from Grayscale Investments
The crypto community has been speculating how the turn of events could impact the price of Bitcoin BTC €59,119.
Pseudonymous crypto investor DivXman told followers that GBTC was the “primary source” of selling pressure on all spot Bitcoin ETFs, but “the times” could be changing.
“That effectively means a significant decrease in selling pressure and a further increase in demand as ETFs collectively are buying more BTC than miners can create,” he explained to his 20,800 X followers.
Crypto trader Jelle predicted to his 80,300 X followers on the same day that a new all-time high for Bitcoin is on the horizon.
“$60 million in inflows to the Grayscale ETF. Volatility by halving will come to an end, and six-figure Bitcoin will follow soon after.” the specialist noted about Grayscale Investments’ earnings report.
Meanwhile, crypto trader Jordan Lindsey responded to the news by pointing to the Bitcoin price saying it is “obviously responding to both outflows and inflows.”
The Bitcoin price has risen 4.91% in the last 24 hours to USD 62,840 at the time of publication, according to CoinMarketCap data.
Several factors contributed to Grayscale’s continued outflows since the launch of the 11 spot Bitcoin ETFs. One reason is GBTC’s high commissions compared to other available ETFs.
GBTC’s fee is set at 1.5%, while fees for other ETFs are all under 1%.
The cheapest is currently Franklin Templeton with a fee of 0.19%. Another main driver is the sale of large amounts of GBTC shares by bankrupt crypto firms FTX and Genesis in an effort to pay creditors.
On April 6, Genesis liquidated approximately 36 million GBTC shares for USD 2.1 billion to buy 32,041 Bitcoin.
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