Grayscale’s Bitcoin ETF Experiences Initial Inflow Following Massive Losses Since January

The edge over BlackRock’s IBIT in terms of assets under management has been narrowing for GBTC, the largest spot bitcoin ETF.

According to Farside Investors, the Grayscale Bitcoin Trust (GBTC), the biggest bitcoin ETF by assets, had a net inflow of fresh money from investors today, marking the first daily rise since the product’s inception in January.

The Grayscale product had previously dominated the conventional investment vehicle market for individuals seeking to make investments in bitcoin (BTC) without engaging in direct cryptocurrency purchases. However, nine competing spot bitcoin ETFs started trading in January, along with its conversion to an easier-to-trade ETF.

Investors pulled billions of dollars out of GBTC due to its much-increased fees. According to statistics provided by CoinDesk, the fund’s bitcoin holdings have decreased from over 600,000 bitcoin to about 290,000 bitcoin.

This fund’s run of nett GBTC withdrawals came to a stop on Friday, but the largest bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT), is posing a threat. The current asset value of GBTC is $18.1 billion, whereas that of IBIT is $16.9 billion. While GBTC had almost $26 billion at the beginning of the year, IBIT, which is presently in second position, had $0.

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