Will Bitcoin Surge Again... First Net Inflow into US Grayscale ETF

On the 2nd, the Bitcoin price displayed on the electronic board at Upbit Lounge in Gangnam-gu, Seoul, fell to around 80 million won after previously trading above 100 million won. Photo by Jinhyung Kang aymsdream@

U.S. asset management firm Grayscale Bitcoin ETF (GBTC) recorded a net inflow for the first time on a single day since trading began in January.

According to financial information platform Farside on the 5th (local time), GBTC's net inflow on the 3rd was $63 million (approximately 85.6 billion KRW). GBTC is one of the 11 Bitcoin spot ETFs approved by the U.S. Securities and Exchange Commission (SEC) in January, and this is the first time it has recorded a net inflow since trading started.

Unlike other ETFs, the Grayscale ETF was converted from a Bitcoin fund. After spot ETF trading began, Bitcoin prices surged sharply, causing a large amount of existing funds to flow out. On the 1st alone, $167.4 million flowed out, and since January, the net outflow has reached $17.4618 billion. This acted as a factor suppressing the rise in Bitcoin prices.

However, with the Grayscale ETF ending its streak of net selling, there are forecasts that Bitcoin prices could rise. A cryptocurrency analyst named DivXman said, "GBTC was the main source of selling pressure among all spot Bitcoin ETFs," adding, "The trend could change."

He further added, "This essentially means that selling pressure is significantly reduced, demand is increasing, and the ETF is buying more Bitcoin than miners can produce."

Although the Grayscale ETF recorded a net outflow of $17.4618 billion, the remaining assets still amount to $18.1 billion.

Meanwhile, BlackRock, the world's largest asset management firm whose ETF had recorded net inflows until now, showed a net outflow ($36.9 million) for the first time on the 1st, indicating a decrease in incoming funds.

As of 7:35 PM Eastern Time on the same day, the price of one Bitcoin was trading at $64,188 (87.23 million KRW). This is more than a 10% rebound from the $56,000 range traded on the 1st, but still more than 10% lower than the all-time high of $73,780 reached on March 14.