Update to ytext is not reflected in codemirror

Hello,

I have a codemirror instance bound to a ydoc. My problem is that when I change the content of the ydoc by running

    ydoc.current.transact(() => {
      ytext.current.insert(0, "hello world");
    });

the text in codemirror is not getting updated. What am I doing wrong here (full source code below)? Thanks a lot for your help.

import CodeMirror from "@uiw/react-codemirror";
import { StrictMode, useEffect, useState, useRef } from "react";

//collaborative editing
import * as Y from "yjs";
import { yCollab } from "y-codemirror.next";
import { WebrtcProvider } from "y-webrtc";

function Editor() {
  const ydoc = useRef(new Y.Doc());
  const ytext = useRef(ydoc.current.getText("codemirror"));
  const [provider, setProvider] = useState();
  const providerInitialized = useRef(false);
  //const undoManager = useRef(new Y.UndoManager(ytext.current));

  useEffect(() => {
    if (providerInitialized.current) return;
    console.log("running use effect");
    const __provider = new WebrtcProvider("statscamp-demo", ydoc.current, {
      signaling: [
        "wss://signaling.yjs.dev",
        "wss://y-webrtc-signaling-eu.herokuapp.com",
        "wss://y-webrtc-signaling-us.herokuapp.com"
      ]
    });
    __provider.awareness.setLocalStateField("user", {
      name: "Anonymous " + Math.floor(Math.random() * 100),
      color: "#30bced",
      colorLight: "#30bced33"
    });
    setProvider(__provider);

    ydoc.current.transact(() => {
      ytext.current.insert(0, "hello world");
    });
    console.log(ytext.current.toString());

    providerInitialized.current = true;

    return () => {
      if (provider) {
        provider.disconnect(); //We destroy doc we created and disconnect
        provider.destroy();
        ydoc.current.destroy(); //the provider to stop propagting changes if user leaves editor
      }
    };
  }, []);

  if (!provider || !providerInitialized.current) return null;
  return (
    <>
      <CodeMirror extensions={[yCollab(ytext.current, provider.awareness)]} />
    </>
  );
}

export default function App() {
  return (
    <StrictMode>
      <div className="App">
        <Editor />
      </div>
    </StrictMode>
  );
}