- Bitcoin spot ETFs in the US have surpassed $3 billion in net flows just 1 month after launching, greatly outpacing the historical performance of gold ETFs like GLD after their launch 20 years ago.
- Much of the recent growth comes from slowing outflows in Grayscale’s GBTC fund as investors move to new ETF options, with Bitcoin ETFs collectively taking in $450 million per day this week.
- Bitcoin ETFs now hold nearly 690,000 BTC worth over $30 billion in assets, making it the 2nd largest ETF commodity in the US after gold. Their continued growth could significantly impact Bitcoin’s price and adoption long-term.
Bitcoin spot ETFs in the United States have collectively breached $3 billion in net flows, roughly one month after birth, blasting past the performance of gold ETFs when they were launched 20 years ago. This milestone comes even inclusive of Grayscale‘s fund, which has seen only outflows as long-term investors cash out—many likely moving to competitive offerings.
Bitcoin ETFs vs Gold ETFs
After going live on November 18, 2004, SPDR Gold Shares, which trades on the NYSE under the GLD ticker, surpassed $1 billion in assets within three days of trading. Volumes slid dramatically after that however, and total known ETF holdings of gold flattened just short of ten million ounces for about one year, Bloomberg data shows.
Still, GLD is often credited for helping kick-start a multi-year bull market for gold, which took its price per ounce from $400 at launch to $1,800 by 2011. The current spot price is around $2,000 today. Likewise, Bitcoin’s price has already reached a new two-year high above $50,000 since getting its own ETFs and witnessing an even larger tsunami of inflows.
Recent Inflows
Notably, about half of those net inflows have arrived within the past three days alone, at a rate of roughly $450 million per day. Monday saw $493 million worth of flows, marking the third-strongest inflow day since launch.
Much of the recent spike is thanks to slowing outflows from the Grayscale Bitcoin Trust (GBTC). Still, the world’s largest Bitcoin fund, many investors started to dump their GBTC shares last month to close a long-term arbitrage trade following Grayscale’s conversion into an ETF.
Current Holdings
Bitcoin ETFs now hold over $30 billion in assets, close to 690,000 BTC, making it the second largest ETF commodity in the country. Gold remains king on that front, boasting $90 billion in assets, including $54 billion within GLD alone, according to VettaFi.
Conclusion
Bitcoin ETFs have seen incredible growth in their first month, surpassing the historical inflows of the popular gold ETF GLD. With assets under management quickly approaching $10 billion, excluding Grayscale, these new investment vehicles appear poised to continue driving institutional Bitcoin adoption. Their impact on Bitcoin’s price and long-term trajectory could prove significant.
