Bitcoin ETFs Still Accumulating BTC Despite Grayscale Outflows
The newly launched spot Bitcoin exchange-traded funds (ETFs) continued their strong performance on the fifth day of trading, adding an additional 10,667 BTC worth around $440 million. BlackRock’s ETF led the way with the largest share of purchases, acquiring 8,700 BTC valued at nearly $358 million. In total, the nine spot Bitcoin ETFs, excluding Grayscale, have accumulated approximately 68,500 BTC since their debut, currently valued at $2.8 billion.
Trading Volumes Indicate Ongoing Demand
An analysis of daily trading volumes showed a 34% increase for the “Newborn Nine” spot ETFs on their fifth day of operations, defying the usual post-launch decline. This suggests sustained demand for these ETFs. By January 18, leading Bitcoin ETFs from BlackRock and Fidelity each surpassed $1 billion in assets under management and ranked among the top 5 ETFs in terms of weekly inflows in the US.
Continued Divergence between Spot ETFs and GBTC
While spot Bitcoin ETFs are attracting significant interest and investment, there continues to be outflows from Grayscale Bitcoin Trust (GBTC), creating a divergence in investor sentiment. However, the new SEC-approved spot ETFs are driving broader adoption and inflows into Bitcoin.
Hot Take: Spot Bitcoin ETFs Show Strong Appetite for BTC
The spot Bitcoin ETFs have demonstrated a strong appetite for BTC since their launch. Despite Grayscale outflows, these funds have continued to accumulate more Bitcoin. This indicates growing investor interest and confidence in the potential of cryptocurrency as an asset class. The success of these ETFs also highlights the demand for regulated investment products that provide exposure to Bitcoin. As the market evolves, it will be interesting to see how these ETFs perform and whether they can sustain their momentum in the long term.
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