Grayscale Bitcoin ETF Records Inflows For Two Successive Days

Grayscale Bitcoin ETF’s Second Inflow in 2 Days

After experiencing daily outflows averaging $218 million for 78 consecutive days since January 11, GBTC recorded its first inflow of $63 million on May 3. This trend continued with a second inflow of $3.9 million on May 6, bringing the total inflows to $66.9 million.

Despite GBTC’s substantial net outflow of $17.4 billion, the broader spot Bitcoin ETF market in the United States remained positive. BlackRock’s iShares Bitcoin Trust attracted the largest overall investment, with net inflows totaling $15.5 billion. 

Other significant contributors to net inflows include ARK 21Shares Bitcoin with $2.1 billion inflows, Bitwise Bitcoin ETF Trust with $1.7 billion, and the Fidelity Wise Origin Bitcoin Fund from Fidelity Investments, which received $8.1 billion. About $11.8 billion has been invested in the spot Bitcoin ETF market, indicating ongoing interest from institutional and retail investors.

SEC Delays Decision on Spot Ethereum ETFs Again

Meanwhile, The SEC has postponed its verdict on spot ETH ETF requests from various providers, including BlackRock and Grayscale. The decision on these applications, initially expected in May, has been pushed to July to allow the SEC sufficient time for review.

Also, the SEC expressed the need for an extended period to review the proposed rule change regarding the Invesco Galaxy spot Ethereum ETF. This extension would allow the commission ample time to address any concerns raised during the evaluation process. 

Invesco Galaxy Spot ETF Decision Delayed 

Moreover, the SEC extended its decision timeline for the highly anticipated Invesco Galaxy spot ETF. After the latest delay, the SEC stated that it would make a final determination on the ETF application on July 5. 

This marks the third postponement since the initial filing, with previous extensions occurring in December 2023 and February 2024. The decision to delay comes amidst growing doubt from experts about approving a spot Ether ETF anytime soon.

Multiple reports indicate that optimism regarding the SEC’s approval of spot Ethereum ETFs by May 23 is diminishing. Discussions with individuals familiar with the situation revealed that recent meetings have been largely one-sided.

Nonetheless, issuers and custodians urge the SEC to expedite the process. However, the engagement hasn’t been as substantial as with BTC spot ETF applications. Additionally, Bloomberg ETF analyst Eric Balchunas expressed skepticism, stating that the probability of the SEC approving such a product in May is less than 25%.

South Korea’s Democratic Party Presses Forward on Bitcoin ETF Promise

After their sweeping victory in April’s general election, South Korea’s opposition Democratic Party has announced plans to ensure the country’s financial regulator (FSC) reconsider its prohibition of spot Bitcoin ETFs. 

Once the 22nd National Assembly convenes in June, the Democratic Party intends to formally request the FSC to review its position on spot Bitcoin ETFs. This initiative aligns with their election pledge to enable local financial institutions to launch these funds, allowing retail investors to access them with tax exemptions.

However, the road ahead may not be smooth. The FSC has previously stated that there is no legal basis for cryptocurrencies like bitcoin to serve as underlying assets for ETFs. 

The move comes amidst several crackdowns on crypto assets. Recently, the Ministry of Public Administration announced proposed amendments to South Korea’s Donations Act. These changes include a ban on cryptocurrency donations, such as BTC, starting in July.