- New spot bitcoin ETFs have seen huge demand in the first week, attracting nearly $3.4 billion in total inflows. Fidelity and BlackRock’s funds have both surpassed $1 billion in inflows.
- Grayscale’s GBTC saw significant outflows of $580 million on Thursday, the largest single day of net outflows since the ETFs launched.
- The new ETF inflows put upward pressure on Bitcoin’s price, while Grayscale’s outflows led to downward pressure with Bitcoin briefly dropping below $41k. Overall the ETFs’ hot start shows massive demand but some investors are taking profits.
The U.S. spot bitcoin ETF market continues to grow rapidly, with Fidelity joining BlackRock in surpassing $1 billion worth of inflows. Overall, flows into the new funds have reached nearly $3.4 billion in the first week. However, Grayscale’s GBTC saw significant outflows yesterday.
The launch of spot bitcoin ETFs in the U.S. has seen huge demand, attracting billions of dollars in inflows in just a few days of trading. Fidelity’s spot bitcoin ETF became the second to hit $1 billion in inflows after five days, joining BlackRock’s fund in the elite club.
Top Inflow Leaders
Fidelity and BlackRock’s spot bitcoin ETFs are leading in terms of total inflows after 5 days of trading. Fidelity’s FBTC has seen over $1 billion in inflows, while BlackRock‘s IBIT also surpassed the $1 billion mark on Thursday. Bitwise’s fund is in third place with nearly $400 million inflows. Overall, 10 of the 11 new ETFs have attracted almost $3.4 billion in total inflows.
Grayscale Outflows Eclipse Others
While most funds saw positive inflows yesterday, Grayscale‘s GBTC had significant outflows of $580 million which eclipsed the $450 million total inflows across the other 10 funds. So Thursday saw the largest single day of net outflows at $130 million since the ETFs launched. Fidelity and BlackRock led inflows again on Thursday.
Trading Volumes and Assets Under Management
Grayscale, BlackRock and Fidelity dominate trading volumes, contributing nearly $2.1 billion out of the total $14 billion volume on Thursday. They also lead in assets under management, with GBTC at $25.6 billion and the other two over $1 billion each.
Bitcoin Price Impact
The net outflows on Thursday put some pressure on Bitcoin’s price, which briefly dropped below $41k. Analysts estimate GBTC investors cashing out could lead to another $1.5 billion exiting, which may further impact Bitcoin’s price.
Conclusion
While the new spot bitcoin ETFs got off to a hot start, Grayscale’s outflows show some investors taking profits. This could put downward pressure on Bitcoin’s price going forward. But overall, the ETFs have seen massive inflows totaling billions in just the first week of trading.
