Bitcoin Spot ETFs Experience Loss of Momentum
The activity surrounding Bitcoin spot ETFs has slowed down significantly this week, with two major funds seeing a decrease in inflows. Both the Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB) experienced their first day of net zero inflows on Monday. According to data from Bloomberg Terminal, the daily volume for both funds was significantly lower compared to previous days. This decline in performance is a notable change for these funds, which have been performing well since their launch.
Runner-Ups Thriving in the Bitcoin Spot ETF Market
Despite not being the largest Bitcoin spot ETFs, both Bitwise and Ark have managed to attract significant investments. These funds have accumulated over 31,000 BTC in less than a month, amounting to over $1.3 billion. The top performers in this market are currently BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC), which have amassed over 137,000 BTC since their launch. However, Bitwise and Ark’s success is still noteworthy considering the competition they face.
BlackRock’s Success and Grayscale’s Decline
BlackRock’s iShares Bitcoin Trust has seen remarkable success, ranking within the top 5 ETFs for year-to-date flows. This achievement is especially impressive considering the fund is only 17 days old. On the other hand, Grayscale’s Bitcoin Trust has experienced consistent outflows since its conversion into an ETF, losing a significant portion of its BTC holdings. However, Grayscale’s outflows have been decreasing recently, which is positive news for the overall market.
Hot Take: Bitcoin Spot ETFs Face Slowed Momentum and Competition
The recent slowdown in Bitcoin spot ETFs’ momentum and the emergence of runner-up funds indicate a highly competitive market. While Bitwise and Ark have attracted substantial investments, BlackRock’s iShares Bitcoin Trust remains the top performer. Additionally, Grayscale’s declining outflows suggest a more stable market environment. As the popularity of Bitcoin spot ETFs continues to grow, it will be interesting to see how these funds fare against each other and if any new contenders enter the market.
By
By
By
By