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HomeNewsBitcoin's Big Bet: ETFs Spark Renewed Interest as Prices Swing

Bitcoin’s Big Bet: ETFs Spark Renewed Interest as Prices Swing

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  • Despite a recent price decline, Bitcoin is showing signs of recovery and is even slightly trending upward, which has rekindled interest in Bitcoin ETFs.
  • The strategic comeback of Grayscale and the increasing attention from institutional investors demonstrate how the Bitcoin ETF investing market is changing.

The recent resurgence of the digital currency has caused a noticeable increase in investor interest in US spot exchange-traded funds (ETFs) linked to Bitcoin (BTC).

According to CoinMarketCap, the price of BTC is currently at roughly $63,168.20. It has increased by 6.46% in the last 24 hours and has maintained a slightly upward trend of 0.37% over the previous week.

Grayscale Bitcoin ETF’s Clever Comeback

The 80-day run of losses for the Grayscale Bitcoin Trust ETF (GBTC) came to an end on May 3, when it had a noteworthy inflow of $63 million, the first since it changed its name to a Bitcoin ETF in January.

This represents a dramatic reversal from the outflows that had occurred previously, amounting to roughly $17.5 billion since January 11. Grayscale continues to be a leading participant, with more than $18.7 billion in assets and over 297,000 BTC.

Grayscale’s fee structure, which charges a 1.5% management fee—much higher than rivals like BlackRock and Fidelity—has been a major source of difficulty.

The continued withdrawals from GBTC have been mostly attributed to this fee, which has prompted the trust to think about introducing a more aggressive, lower-cost “mini” Bitcoin ETF.

The largest BTC spot ETF, GBTC, continues to lead despite fierce competition, but BlackRock’s iShares Bitcoin Trust (IBIT), with $16.9 billion in AUM as of the most recent reports, has been gaining momentum as well.

IBIT saw relatively small inflows of $12.7 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the charts with remarkable inflow numbers of $102.6 million.

bitcoin etf
Source: Farside

Increasing Interest from Institutions

An increase in institutional investor optimism is reflected in the notable surge in investment from Hong Kong-based corporations in U.S. spot BTC ETFs. Previous ETHNews reports underline the significant potential for pension funds and large funds to get more involved with Bitcoin ETFs, which supports this trend.

During these events, prominent crypto influencers claimed that the main cause of sell pressure on all spot BTC ETFs was Grayscale’s GBTC.

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Syofri
Syofri
Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628
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