The U.S. spot bitcoin ETFs experience a slowdown in net inflows
On Thursday, the net inflows into the U.S. spot bitcoin ETFs reached their lowest level of the month as bitcoin’s price dropped after hitting a new all-time high. The net inflows amounted to $132.5 million, with a significant outflow of $257.1 million from Grayscale’s converted GBTC fund. Since the start of spot bitcoin ETF trading on January 11, the total net inflows stand at just under $12 billion.
- Net inflows into U.S. spot bitcoin ETFs fell to $132.5 million
- Outflows from Grayscale’s converted GBTC fund contributed to the decrease
- Total net inflows since January 11 amount to just under $12 billion
BlackRock’s IBIT ETF dominated Thursday’s inflows, adding $345.4 million. VanEck’s HODL came second with $13.8 million worth of inflows, while Fidelity’s FBTC spot bitcoin ETF experienced its lowest daily figure since launch with $13.7 million in net inflows.
Interest in spot bitcoin ETFs continues to grow
Despite the slowdown in net inflows, interest in spot bitcoin ETFs is still increasing. Cetera Financial Group approved the usage of several spot bitcoin ETFs for its affiliated financial professionals’ clients, including BlackRock’s IBIT and Fidelity’s FBTC.
- Cetera Financial Group approves usage of spot bitcoin ETFs for its clients
- Financial advisory firms are using bitcoin ETFs as a point of differentiation and competitive advantage
Spot bitcoin ETFs witness third-largest day for trading volume
The combined daily trading volume for U.S. spot bitcoin ETFs reached $7.98 billion on Thursday, the third-largest level to date. BlackRock’s IBIT ETF generated the highest trading volume of $3.92 billion, followed by Grayscale’s GBTC with $1.96 billion and Fidelity’s FBTC with $1.21 billion.
- Daily trading volume for U.S. spot bitcoin ETFs hits third-largest level of $7.98 billion
- BlackRock’s IBIT dominates trading volume with $3.92 billion
- Grayscale’s GBTC and Fidelity’s FBTC also contribute to high trading volume
BlackRock’s IBIT is approaching a 50% market share by trading volume, while Grayscale’s GBTC has seen a decline in market share from 50.5% on January 11 to 24.6% on Thursday.
Bitcoin retreats from all-time highs
After reaching a new all-time high of $73,836, the price of bitcoin experienced a sharp sell-off and dropped 11% to a low of $65,566. Bitcoin has since recovered slightly and is currently trading at $67,696.
This price correction resulted in the liquidation of more than $278 million in bitcoin positions, with the majority being long positions. The overall crypto market also saw over $667 million in liquidated long positions during this period.
The decline in bitcoin’s price has had an impact on the wider market, with various indices experiencing a drawdown. However, these indices are still significantly higher than they were late last year.
Hot Take: Bitcoin experiences volatility after reaching new all-time high 📉
The U.S. spot bitcoin ETFs saw a slowdown in net inflows as bitcoin’s price dropped after reaching a new all-time high. This volatility led to the liquidation of long positions and a decline in trading volume. However, interest in spot bitcoin ETFs is still growing, with financial advisory firms approving their usage for clients. Bitcoin’s retreat from its all-time high has had an impact on the wider crypto market, with various indices experiencing a drawdown.
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