The Grayscale Bitcoin Trust (GBTC) experienced an unusual occurrence with inflows to its spot Bitcoin exchange-traded fund (ETF), as they halted abruptly after just two days, signaling a return to outflows. Following its launch on January 11, the GBTC ETF had been experiencing continuous outflows amounting to over $17.5 billion over 78 consecutive days. However, in May, the trend briefly reversed with inflows totaling $66.9 million, occurring on May 3 and 6, with $63 million and $3.9 million, respectively.

Despite the brief surge in inflows, the momentum quickly dissipated, with outflows resuming shortly thereafter. On May 7 and 9, GBTC recorded outflows of $28.6 million and $43.4 million, effectively undoing the recent influx of investments. Interestingly, Grayscale stood as the sole issuer of a spot Bitcoin ETF to report outflows on both occasions, contrasting with the other nine Bitcoin ETFs approved by the United States Securities and Exchange Commission (SEC), which either recorded positive or no investments during the same period.

Since its launch, the Grayscale Bitcoin Trust has encountered a daily loss averaging $211 million. Nevertheless, the positive inflows to other ETFs have offset this deficit, resulting in a net positive balance of $11.7 billion. Notably, all Bitcoin ETF issuers, excluding GBTC, have managed to maintain positive inflow balances. Among these issuers, BlackRock's iShares Bitcoin Trust leads the pack, accumulating nearly $15.5 billion in investments to date. Additionally, prominent issuers such as Fidelity's Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, and Cathie Wood's ARK 21Shares Bitcoin ETF boast net inflows of $8.1 billion, $1.7 billion, and $2.2 billion, respectively.

VanEck CEO Jan VanEck, speaking at Paris Blockchain Week in April, provided insights into the source of Bitcoin ETF inflows, noting that the retail sector accounts for 90% of these investments. While some Bitcoin whales and institutions had previously allocated assets to Bitcoin, VanEck anticipated significant institutional investments from banks and traditional firms by May.