Spot Bitcoin ETF Experience First Net Outflow Since Inception
The landscape of spot bitcoin exchange-traded funds (ETFs) has encountered a notable shift. For the first time since their launch on January 11, these Bitcoin ETF, including prominent ones like BlackRock’s IBIT and Fidelity’s FBTC, have experienced a collective net outflow. This development indicates a change in investor behavior, as exits from funds like Grayscale’s GBTC have outpaced new investments.
Bloomberg Intelligence analyst James Seyffart’s data reveals a net outflow of $158 million from these ETFs on a recent Wednesday. This fluctuation aligns with the often unpredictable nature of day-to-day fund flows. CoinDesk’s analysis, based on data from the issuers’ websites, further supports this trend. As of January 24, the total bitcoin held by all spot ETFs, GBTC included, was approximately 649,000, down from over 660,000 a week earlier – a decline of around 11,000 bitcoins.
Grayscale’s GBTC stands out for experiencing actual negative flows, with its total bitcoin trust dipping to 523,516 from 592,098. In contrast, BlackRock’s IBIT and Fidelity’s FBTC have shown impressive growth. Each fund held over 40,000 bitcoins as of January 24, significantly up from 20,000-25,000 a week prior. They are also approaching the $2 billion mark in assets under management.
Despite these gains, there’s a noticeable deceleration in inflows. For instance, BlackRock added only 1,663 tokens on January 24, marking its weakest daily increase since its inception, a sharp decrease from the 8,705 added on January 17.
Overall, despite the recent slowdown, the 10 spot bitcoin ETF have seen substantial inflows since their debut. Eric Balchunas, a colleague of Seyffart at Bloomberg, estimated total dollar inflows at $824 million since the launch. This translates into a net bitcoin addition of approximately 17,000-20,000 tokens.
