Grayscale spot bitcoin ETF inflows may be result of short-term trading: Bloomberg ETF analyst

Bloomberg ETF Analyst James Seyffart told The Block while he's not absolutely sure what might have caused the swing, there could be a few different explanations.

"It could be a short-term tactical trade or pairs trade of sorts. Where the fee is far less relevant over shorter time frames," he said.

Grayscale launched its ETF, a conversion of its flagship GBTC fund, as a spot bitcoin exchange-traded fund in January. At the time of launch, the fund had nearly $30 billion in assets under management but then shed billions of dollars in outflows. The firm's product charges a higher fee than competing funds issued by firms like BlackRock and Fidelity.

"If market makers are using GBTC as part of making markets, it could cause [the inflows]," Seyffart said. "It could [also] be someone from a platform where GBTC is the only approved vehicle to get spot bitcoin access."

While Grayscale notching a couple of days of inflows doesn't matter in the "grand scheme," according to Seyffart, overall, the amount of capital flowing into the U.S.-based spot bitcoin ETFs appears to have recently tapered off slightly amid a more tepid bitcoin market.