Total Net Flows for US Spot Bitcoin ETFs Reach $1.2 Billion
Total net flows from the first five days of trading for the new U.S. spot bitcoin ETFs now stand at nearly $1.2 billion, with Fidelity joining BlackRock in the $1 billion-plus inflows club yesterday, according to data from BitMEX Research. Bitwise is currently in third place with $395.5 million worth of inflows, while Ark Invest/21Shares and Invesco have seen a total of $320.9 million and $194.9 million, respectively. Overall, 10 of the 11 ETFs have seen inflows totaling almost $3.4 billion so far, with Grayscale notching up $2.2 billion in outflows. The remaining funds have all witnessed less than $100 million worth of total inflows.
Spot Bitcoin ETFs Experience Largest Day of Net Outflows
Overall, the spot bitcoin ETFs witnessed net outflows of $131.6 million yesterday — the largest so far — with GBTC significantly eclipsing inflows from the other funds. Despite 10 of the 11 ETF products generating a total of $447.9 million worth of inflows, it was not enough to overcome $579.6 million in outflows from Grayscale’s converted fund, according to BitMEX Research. Fidelity (FBTC) and BlackRock (IBIT) spot bitcoin ETFs led yesterday’s inflows, attracting $177.9 million and $145.6 million, respectively.
Grayscale, BlackRock, and Fidelity Dominate Trading Volume and AUM
Grayscale, BlackRock, and Fidelity’s spot bitcoin ETFs continued to dominate trading volume yesterday, with almost $2.1 billion in volume across all the funds adding to a cumulative total approaching $14 billion, according to Yahoo Finance data compiled by The Block. Grayscale’s GBTC contributed nearly $1.1 billion to Thursday’s trading volume, with BlackRock’s IBIT and Fidelity’s FBTC generating $416 million and $367 million, respectively. The big three also dominate in terms of assets under management, with GBTC currently showing an AUM of $25.6 billion, followed by IBIT and FBTC at $1.1 billion and $875 million, respectively.
Bitcoin Price Falls Amid Net Outflows
Bitcoin’s price briefly fell below $41,000 yesterday amid the net outflows from the spot ETFs before recovering slightly. Bitcoin is currently trading at $41,379, down 3% over the last 24 hours and around 10% since the ETFs launched on Thursday last week. JPMorgan analysts predict that GBTC investors taking profits could further pressure the price of Bitcoin. They estimate up to $3 billion in GBTC outflows as investors seek to take profits.
Hot Take: GBTC Profit-Taking May Impact Bitcoin Price
The potential profit-taking by GBTC investors could have a significant impact on the price of Bitcoin in the coming weeks, according to JPMorgan analysts. If their estimated $3 billion outflows from GBTC are accurate, with $1.5 billion already exited, there could be an additional $1.5 billion leaving the Bitcoin space through profit-taking on GBTC. This could put further pressure on Bitcoin prices. Investors who previously bought GBTC shares at a discount in anticipation of an ETF conversion are now exiting the Bitcoin space entirely rather than shifting to cheaper spot Bitcoin ETFs.
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