Grayscale Bitcoin ETF Continues To See Negative Outflows Of Over $100 Million

Key Points:

• Outflows from the Grayscale Bitcoin ETF signal ongoing investor uncertainty amidst hints of Federal Reserve rate cuts.
• Despite this, the GBTC recorded inflows in May, breaking a streak of 78 consecutive days of outflows since its January launch.
• Major banking institutions like JPMorgan and Wells Fargo have disclosed significant holdings in various Bitcoin ETFs, underscoring continued institutional interest in cryptocurrency investments.

Investor uncertainty over potential Federal Reserve rate cuts persists as outflows from the Grayscale Bitcoin ETF (GBTC) resume, signaling a cautious market sentiment.

Investor Uncertainty Persists as Grayscale Bitcoin ETF Outflows Resume

According to data from SoSoValue, on May 10, total net outflows from spot Bitcoin ETFs amounted to $84.6581 million. This marks the second consecutive day of outflows for Bitcoin ETFs, with Grayscale Bitcoin ETF reporting an additional $103 million in outflows on Friday. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) experienced an inflow of $12.4363 million, and Fidelity’s FBTC saw $5.3039 million flowing in.

Despite this, the Grayscale Bitcoin ETF managed to record inflows totaling $66.9 million in May, breaking a streak of 78 consecutive days of outflows since its January launch. Notably, iShares Bitcoin Trust stands out, attracting nearly $16 billion in investments to date.

Major Banks Disclose Significant Holdings in Bitcoin ETFs

BTC dipped to $60,200 on May 10th amid bearish investor signals, leading to significant outflows from every U.S. spot Bitcoin ETF, including BlackRock’s IBIT, which experienced its first outflow since January.

Major banking institutions, such as JPMorgan and Wells Fargo, have disclosed their exposure to Bitcoin ETFs, highlighting continued institutional interest in the cryptocurrency market. JPMorgan revealed substantial holdings across various Bitcoin ETFs, demonstrating a diversified investment strategy in the sector. Similarly, Wells Fargo’s recent filing with the US SEC disclosed its ownership of 2,245 shares of the Grayscale Bitcoin ETF.