Bitcoin Spot ETFs in the US Surpass $3 Billion in Net Flows
Bitcoin spot ETFs in the United States have exceeded $3 billion in net flows, outperforming gold ETFs when they were first launched two decades ago. This milestone includes Grayscale’s fund, which has experienced outflows as long-term investors cash out and move to competing offerings.
Inflows Approaching $10 Billion
According to data from BitMEX Research, excluding Grayscale, inflows into Bitcoin spot ETFs are approaching $10 billion. As of Monday, these inflows totaled more than $9.6 billion.
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Bitcoin ETFs Outpace Gold ETFs
Bloomberg ETF analyst Eric Balchunas noted on Twitter that it took nearly two years for the GLD ETF (which trades on the NYSE) to absorb the same capital that Bitcoin ETFs have attracted in just 32 days.
Gold ETF Performance
The SPDR Gold Shares (GLD) surpassed $1 billion in assets within three days of trading after its launch in November 2004. However, its volumes declined afterward, and total known ETF holdings of gold remained stagnant for about a year.
New Record Highs for Bitcoin Price
Since the introduction of Bitcoin ETFs and the influx of funds, Bitcoin’s price has already reached a new two-year high above $50,000.
Recent Inflow Spike and GBTC Outflows
About half of the recent net inflows into Bitcoin spot ETFs have occurred within the past three days at a rate of approximately $450 million per day. The decrease in outflows from the Grayscale Bitcoin Trust (GBTC) has contributed to this spike. Many investors have been selling their GBTC shares to rotate into cheaper ETFs from BlackRock, Fidelity, and other providers.
Bitcoin ETFs’ Growing Asset Value
Bitcoin ETFs now hold over $30 billion in assets, making it the second-largest ETF commodity in the US. However, gold remains the dominant player in this space with $90 billion in assets, including $54 billion within GLD alone.
Hot Take: Bitcoin Spot ETFs Outshine Gold ETFs in Record Time
Bitcoin spot ETFs in the US have achieved remarkable success, surpassing the net flows of gold ETFs within a short period. This milestone includes Grayscale’s fund, which has experienced outflows as long-term investors cash out. Excluding Grayscale, inflows into Bitcoin spot ETFs are rapidly approaching $10 billion. The speed at which Bitcoin ETFs have absorbed capital far exceeds that of gold ETFs when they were first launched. Bitcoin’s price has also reached new record highs since the introduction of its own ETFs and the significant influx of funds. With over $30 billion in assets, Bitcoin ETFs are now the second-largest commodity-based ETF in the country.
