US Bitcoin ETFs ended their seven-day losing streak as flows turned positive, with the Grayscale Bitcoin ETF receiving its first-ever inflows of $63 million. This positive turn of events followed the release of disappointing US nonfarm payroll data, which raised the possibility of a dovish stance by the Fed. As a result, the price of Bitcoin soared after the announcement on May 3.
The end of the 77-day losing streak is particularly noteworthy, as withdrawals from the Grayscale Bitcoin ETF have finally ceased. This is welcome news for investors in GBTC, even though the size of the inflows is not very significant.
In addition to the Grayscale Bitcoin ETF, spot Bitcoin ETFs also saw a significant net inflow of $378 million on May 3, breaking their seven-day losing streak. Fidelity ETF FBTC experienced a net inflow of $103 million in a single day.
Meanwhile, BlackRock’s IBIT received only $12.7 million on Friday, putting it in second-to-last position. It appears that BlackRock’s competitors, particularly Fidelity, are gaining ground in the market. Furthermore, corporations based in Hong Kong have been purchasing Bitcoin ETFs on the US spot market.
One notable example is Hong Kong-based investment firm Yong Rong Asset Management, which paid $38 million for the BlackRock iShares Bitcoin ETF (IBIT). With a holding percentage of over 12%, Yong Rong Asset Management is now the largest holder of IBIT. The low management costs and high liquidity of US spot Bitcoin ETFs have attracted investors from around the world.
In other news, the industry’s expectations for the SEC’s decision on an Ethereum ETF were underwhelmed.