- New bitcoin ETFs in the U.S. have accumulated $7.7 billion in assets, offsetting the $6 billion withdrawn from incumbent products like GBTC.
- Inflows into new ETFs like BITO and BTCW total over $700 million so far this year, attracting investors seeking passive bitcoin exposure.
- GBTC saw $6 billion in outflows in 2022 as its premium evaporated, versus $2.3 billion of inflows in 2021, though new spot-based ETFs remain popular.
New bitcoin exchange-traded funds (ETFs) in the U.S. have accumulated $7.7 billion in assets since debuting, offsetting the $6 billion withdrawn from incumbent products, per the latest report from digital asset manager CoinShares.
Inflows for New ETFs
The new bitcoin ETFs – like the Invesco Physical Bitcoin ETF (BITO) and the WisdomTree Bitcoin Trust (BTCW) – have attracted over $700 million of net inflows this year so far.
The products have proven popular with investors who previously had few options for gaining passive exposure to the largest cryptocurrency without having to self-custody or wrestle with the complexities of crypto derivatives, said James Butterfill, head of research at CoinShares.
Offsetting Outflows for Incumbents
The inflows into new ETFs are helping offset outflows from the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund. GBTC saw its premium evaporate last year as investors rotated into cheaper, more convenient options.
GBTC saw outflows of $115 million last week, extending its 2022 total to just over $6 billion. That’s down from $2.3 billion of inflows in 2021 when the trust still traded at a premium to net asset value.
Conclusion
The new, spot-based ETFs have proven popular even amid the turmoil in digital-asset markets over the past 10 months. While trading volumes have declined, assets under management have held up reasonably well, which CoinShares takes as a sign of sticky demand from long-term investors.
