According to CryptoPotato, Grayscale's GBTC fund experienced an inflow of $9.3 million on May 20. This marks a significant milestone for Grayscale, which has been losing capital since it converted the fund to a spot Bitcoin ETF in January. This is the first time since mid-January that GBTC has seen four consecutive days of inflow, with the first reversal of outflows recorded on May 3. Over the past four trading days, the total GBTC inflow was $72.5 million, as reported by Farside Investors.
However, GBTC has lost 53% of its assets under management over the past four months, amounting to 330,610 BTC, valued at approximately $23.5 billion. This has led to concerns that a similar situation could occur with its Ethereum fund if the SEC approves its conversion to a spot ETH ETF on or before the June 23 deadline. The ETHE fund, which currently holds around $10 billion worth of ETH, is trading at a discount to net asset value of about -20%. This discount could be eliminated if the SEC approves the conversion to a spot ETH ETF. A potential exodus from this fund, similar to GBTC, could result in approximately 1.3 million ETH exiting the fund.
Despite the outflow from GBTC, Bitcoin prices have rallied 70% since the approval of spot ETFs. If a similar trend occurs with ETH, the asset could potentially surge to $6,000 in the coming months.
The total inflow for all spot Bitcoin ETFs on May 20 was $237.2 million. Over the past five trading days, more than $1.1 billion has been invested into BTC ETFs. Ark 21 Shares led the way with an inflow of $68.3 million, closely followed by BlackRock and Fidelity with $66.4 million and $64 million, respectively.
The surge in ETF inflow coincides with the crypto market capitalization reaching a six-week high of $2.74 trillion on May 21, primarily driven by Ethereum.