Bitcoin ETFs Attract $1.4 Billion in First Two Trading Days Amid Market Volatility
Summary:
Bitcoin spot exchange-traded funds (ETFs) attracted $1.4 billion in inflows in their first two trading sessions. The Grayscale Bitcoin Trust (GBTC) experienced $579 million in outflows, netting total inflows across all products at $819 million. These initial movements align with predictions that Bitcoin ETFs could attract around $10 billion in the first year. Notably, GBTC is considered one of the largest Bitcoin holders, managing over $27 billion in the cryptocurrency. Leading the week's performance was BlackRock's iShares Bitcoin Trust (IBIT) with $497.7 million total flows.
Just two days after their launch, Bitcoin spot exchange-traded funds (ETFs) have reported an impressive influx totaling $1.4 billion, as per the analysis given by Eric Balchunas, a Bloomberg ETF expert. The analysis indicates that these funds attracted roughly 500,000 trades, leading to a trade volume of $3.6 billion. This volume reflects both the inflows and the outflows of these funds. Balchunas hinted that these figures might be subjected to adjustment due to certain transactions still undergoing accounting settlement.
Further details reveal that Grayscale's ETF, known as the Grayscale Bitcoin Trust (GBTC), witnessed an outflow of $579 million within this same timeframe. When considering these outflows, the net inflow across all products was still a strong $819 million. So far, these numbers align with previous forecasts by ETF pundit James Seyffart, who anticipated that Bitcoin ETFs could lure almost $10 billion within their first year. The outflows from Grayscale’s GBTC may be attributed to shareholders redeeming their shares following this week's approval by the U.S. Securities and Exchange Commission through a rule modification. Anthony Scaramucci, founder of SkyBridge Capital, mentioned to Bloomberg that a few GBTC holders are realizing losses and switching to alternatives with lower fees.
GBTC, which has been trading since 2013 but only made redeemable for Bitcoin on January 1, is one of the biggest Bitcoin (BTC) holders, with control over more than $27 billion worth of the cryptocurrency according to data from Arkham Intelligence. The best performance of the week, however, goes to BlackRock's iShares Bitcoin Trust (IBIT) with total flows of $497.7 million. It was closely followed by Fidelity Advantage Bitcoin ETF (FBTC) with $422.3 million and Bitwise (BITB) with $237.9 million. After a 75% increase in the 90 days preceding ETFs approval, CoinTelegraph's market analysis reported a 6.8% fall in Bitcoin prices between January 11 and 12, validating the bear’s belief of sell-offs following the SEC green light. At the moment, Bitcoin is trading at $42,856, marking a 0.77% drop in the last 24 hours.
Published At
1/13/2024 8:31:05 PM
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