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GBTC's 78-Day Outflow Streak Snaps Amid Spot Bitcoin ETF Inflows: Will the Bull Market Resume?

GBTC Outflow Streak Ends as Bitcoin ETFs Record $378 Million Net Inflow

May 5, 2024 by Sheldon

After suffering significant outflows for nearly four months, Grayscale's Bitcoin Trust (GBTC) has finally seen its first day of net inflows. On May 3rd, a remarkable $63 million flowed into $GBTC, marking a distinct reversal after approximately $17.5 billion in outflows since the launch of spot Bitcoin ETFs in January.

According to data by Farside, This development wasn't isolated to $GBTC. Other Bitcoin ETFs also saw a surge in inflows, with total inflows for May 3rd reaching $378 million:

  • Franklin Templeton's Bitcoin ETF: $60.9 million
  • Fidelity's Wise Origin Bitcoin Fund: $102.6 million
  • Bitwise Bitcoin Fund: $33.5 million
  • Invesco Galaxy Bitcoin ETF: $33.2 million

Market Speculation: Will the Tide Turn for Crypto?

The crypto community is buzzing with speculation about the potential ramifications of this shift. Some analysts believe $GBTC's outflows were a major source of sell pressure across the Bitcoin market. With inflows now in the picture, this decreased sell pressure, coupled with increased ETF demand, could ignite a bullish run for Bitcoin. This speculation is not without basis, as it is reflected in the rising Bitcoin prices over the weekend, with Bitcoin reaching $64,500 before settling at around $64,000. Altcoins are also experiencing a rally, with Solana (SOL) hitting $149 over the weekend. 

It remains to be seen whether $GBTC's inflows represent a sustained trend reversal or a brief respite. The coming week will be crucial in determining the broader trajectory of the cryptocurrency market. If the inflows continue, it could signal a renewed bullish sentiment, potentially echoing Bitcoin's traditionally positive post-halving price action. However, if outflows resume, it could indicate lingering bearish pressure. This uncertainty underscores the need for caution and vigilance in the cryptocurrency market.

Disclaimer: The cryptocurrency market is highly volatile. This article provides information, not financial advice. Please undertake thorough research before making investment decisions.

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