- Spot bitcoin exchange-traded funds (ETFs) amassed net inflows of roughly $12.1 billion in the first quarter of 2024.
- BlackRock’s iShares Bitcoin Trust (IBIT) was the biggest winner, accumulating $13.9 billion in inflows since trading began in January.
- The Grayscale Bitcoin Trust (GBTC) saw $14.7 billion in outflows due to its relatively high fees.
The first quarter of 2024 marked the launch of the first spot bitcoin exchange-traded funds (ETFs) in the US. In less than three months, these new offerings amassed a staggering $12.1 billion in net inflows.
Winners So Far
The biggest winner has been Blackrock’s iShares Bitcoin Trust (IBIT), which has attracted an astounding $13.9 billion in inflows since trading began in January. This makes IBIT the fastest growing ETF in history, according to Blackrock CEO Larry Fink.
Fidelity’s Wise Origin Bitcoin Trust (FBTC) comes in second place, with $7.5 billion in inflows. No other bitcoin ETF is even close to the success of these top two.
The Outlier: GBTC
Ironically, the Grayscale Bitcoin Trust (GBTC) is the outlier among bitcoin ETFs. Despite being the first and largest bitcoin fund for years, GBTC saw $14.7 billion in outflows in Q1 2024.
This is likely due to GBTC’s relatively high fees compared to the new spot bitcoin ETFs. Grayscale has applied to launch a new spot bitcoin ETF with lower fees, which could allow it to stop the bleeding and compete with the other offerings.
What’s Next
According to Bitwise’s Matt Hougan, the flows into spot bitcoin ETFs are just getting started. As more asset managers research bitcoin and develop investment products, demand is expected to steadily rise over the next two years.
The launch of spot bitcoin ETFs has already boosted the bitcoin price 67% year-to-date. With the upcoming halving event later in 2024, additional price gains seem likely if inflows continue. The growth of layer-two solutions on Bitcoin also has investors excited about further innovation and development on the network.
