Outflows from Grayscale’s GBTC have continued to stay elevated, while the collective inflows into other funds have experienced a deceleration.
Recently launched spot bitcoin exchange-traded funds (ETFs) are collectively experiencing negative flows for the first time since their debut on January 11. Inflows into funds like BlackRock’s IBIT and Fidelity’s FBTC have failed to match the outflows from Grayscale’s GBTC.
According to the insights provided by Bloomberg Intelligence analyst James Seyffart, there was a net outflow of $158 million from the 10 spot Bitcoin ETFs, which include GBTC, on Wednesday. It’s important to keep in mind that day-to-day flow data can be subject to significant fluctuations. Data sourced from the issuers’ websites, as compiled by CoinDesk, indicates that as of January 24, the total amount of Bitcoin held by all spot ETFs, including GBTC, was approximately 649,000. This is in contrast to the figure of over 660,000 observed a week earlier, marking a decline of around 11,000 tokens.
Among the group of nine remaining funds, BlackRock’s IBIT and Fidelity’s FBTC have emerged as prominent players. As of January 24, both of these funds have amassed a significant holding of over 40,000 bitcoins, showcasing a substantial increase from the 20,000-25,000 they held just one week prior. Furthermore, these funds are on the verge of reaching the noteworthy milestone of $2 billion in assets under management.
However, it’s essential to emphasize that the pace of inflows into these funds has recently decelerated. For instance, on January 24, BlackRock only added 1,663 tokens, marking its smallest daily increase since its inception and a notable drop from the 8,705 tokens added on January 17.
During the week, the sole fund that experienced net outflows was GBTC, witnessing a reduction in its total bitcoin holdings in trust from 592,098 to 523,516.
Despite the moderated growth rate in the past week, the cumulative net inflows into the 10 spot ETFs that commenced trading on January 11 have remained substantial. Eric Balchunas, a colleague of Seyffart at Bloomberg, calculated a total dollar inflow of $824 million since their launch, which translates to an increase in bitcoin holdings of approximately 17,000-20,000 tokens.
