- Bitcoin ETF shares are rebounding after an initial post-launch decline, with Grayscale leading in assets under management despite large outflows.
- IShares and Fidelity ETFs saw the most inflows, while Grayscale saw the most trading volume. Total ETF trading volume excluding Grayscale topped $12 billion.
- Bitcoin itself has rebounded about 15% in 2023 after initially falling from near $49,000 following the ETF launch. It’s up about 3% Tuesday to over $43,000.
Bitcoin ETF shares have been rising over the past week, putting them on track for five straight days of gains. Meanwhile, bitcoin has rebounded about 9% over the past week after falling from two-year highs near $49,000 in early January. The January 11th launch of spot bitcoin ETFs was a sell-the-news event for some. However, profit-taking now appears to be easing.
Grayscale Leads the Pack
Grayscale Bitcoin Trust (GBTC) shares are rebounding and making a bullish move after substantial outflows since its conversion to a spot bitcoin ETF. GBTC outflows slowed to $1.917 billion on Monday, down from $2.551 billion on Friday. Outgoing capital totaled $50.412 billion in the first 11 trading days after the bitcoin ETF launches. The nine newborn ETFs managed to offset those outflows with gross inflows of $5.8 billion during that period, per data from Bloomberg analyst James Seyffart.
Still, GBTC was the volume leader, recording $13.2 billion in total trading volume. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) ranked next in terms of volume, with $5.31 billion and $4.56 billion respectively.
IBIT saw $2.17 billion in inflows, the most of any bitcoin ETF. FBTC took in $1.93 billion. Total trading volume across the new spot bitcoin ETFs, excluding Grayscale and Hashdex, reached $12.736 billion through Monday.
Despite the outflows, Grayscale holds $20.84 billion in assets, making it the largest Bitcoin fund. IBIT ranks second with $2.19 billion in assets, while Fidelity has $1.94 billion.
Bitcoin ETFs Regain Ground
Cathie Wood’s ARK 21Shares Bitcoin ETF (ARKB) saw $1.42 billion in total trading volume, with $596.4 million in inflows. ARKB holds $604.6 million in assets under management.
Bitcoin ETFs have trended higher after an initial tumble post-launch. On Friday, GBTC rebounded above its 21-day exponential moving average and 10-day line after bouncing off its 50-day line on January 23rd. GBTC rose slightly on Tuesday after surging 2.7% Monday. Grayscale has rallied 11.2% so far this year.
IBIT inched higher Tuesday morning after swinging 2.8% higher Monday. IBIT shares have nearly recovered their post-launch declines. FBTC ticked up less than 1% early Tuesday following its 2.9% advance Monday.
Bitcoin Rebounds Above $43,000
Bitcoin hovered around $43,400 Tuesday morning, up nearly 3.4% over 24 hours but fading from its overnight high of $43,833. BTC had spiked to $49,000 on January 11th on the ETF launch, its highest since December 2021. It then fell back to its early December 2022 level prior to the SEC announcement. The world’s largest cryptocurrency has rebounded about 15.7% in 2023. Bitcoin is up about 2.7% year-to-date.
