Grayscale Spot Bitcoin ETF Inflows Could Be Result of Short-Term Trading: Bloomberg ETF Analyst
Grayscale’s spot Bitcoin ETF ended its 78th consecutive day of outflows after recording two consecutive days of net inflows.
Bloomberg ETF analyst James Seyffart told The Block that he’s not sure what’s causing the fluctuations, but there could be a few different explanations.
“It could be a short-term tactical trade, or it could be some kind of pairs trading, where the fees are much less relevant over a short period of time,” he said.
Last January, Grayscale launched an ETF that converted its flagship GBTC fund into a physical Bitcoin exchange-traded fund. At launch, the fund had nearly $30 billion in assets under management, but has since experienced billions of dollars in outflows. The company’s products charge higher fees than competing funds issued by companies such as BlackRock and Fidelity.
“If market makers were to use GBTC as part of their market making, (inflows) could occur,” Seyffart said. “It could be someone on a platform where GBTC is the only authorized means of gaining access to physical Bitcoin.”
While recording multiple days of inflows isn’t significant in what Grayscale calls “the grand scheme of things,” overall, the amount of capital flowing into U.S.-based spot Bitcoin ETFs appears to have slowed slightly amid more tepid conditions recently. Bitcoin market.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.
