Spot Bitcoin exchange-traded funds (ETFs) are seeing impressive inflows two days after approval, according to data from BitMEX Research.
The analytics firm reported $532 million in total net inflows to spot Bitcoin ETFs, with BlackRock IBIT leading the way with $498 million. Fidelity's FBTC followed with $422 million, and 21 Shares' ARKB saw a net inflow of $105 million.
However, not all funds recorded profits. Grayscale's GBTC saw a significant outflow of $579 million, including a $484 million outflow on the second day alone, Bloomberg analyst James Seyffart reported on X.
Bitwise records an impressive performance on the second day
Interestingly, Bitwise was declared the winner of the first day despite GBTC being the leader in terms of assets. Nevertheless, BitMEX Research believes that GBTC could face significant outflows in the coming days, weeks and months due to its high 1.5% fee.
ETF Day 1 Flow – UPDATE
Finally the GBTC number is out. GBTC has an outflow of $95 million
The day's total net inflow into the new ETFs was $625.8 million
Bitwise was the winner of day 1 pic.twitter.com/HFsqhjtvEt
— BitMEX Research (@BitMEXResearch) January 12, 2024
At the time of writing, other smaller players including Hashdex and Valkyrie were still awaiting accurate data, while Fidelity had a solid second day, raising $195 million. BlackRock also reported a sizable inflow of $386 million on the second day, bringing its two-day total to nearly $500 million, potentially leading the way.
While these numbers are undoubtedly impressive, Bloomberg analyst Eric Balchunas noted that today's actions on GBTC will not be reflected in flow data until Tuesday evening, reminding us that these numbers should reflect Thursday's actions.
Note that most of this flow data has T+0, but the CR/RD record regardless takes time to get into the stocks, which is why IBIT could see a lump of money tonight. Additionally, GBTC is T+1, so NONE of yesterday's activity will be reflected in the flows until Friday at the earliest and possibly Tuesday evening.
— Eric Balchunas (@EricBalchunas) January 12, 2024
When the dust settles, it will be interesting to see how these numbers evolve and shape the history of spot Bitcoin ETFs.
Spot Bitcoin ETF approval triggers cut-throat competition
The US Securities and Exchange Commission's approval of 11 spot Bitcoin ETFs this week, including BlackRock's iShares Bitcoin Trust and Grayscale Bitcoin Trust, has transformed the digital asset industry. This battle to attract investors has been going on for a decade.
A day after their approval, Bitcoin ETFs saw an impressive $4.6 billion in shares traded, marking a turning point in the cryptocurrency industry and bringing it closer to wider adoption as a viable investment.
But this landmark approval also sparked a brutal battle for market dominance, as some firms cut their fees below US ETF industry standards even before its launch.
As a case in point, after the ETF began trading, Valkyrie lowered its fees twice, ultimately reaching 0.25% and waiving those fees for the first three months. Franklin Templeton cut its Bitcoin ETF fee to an all-time low of 0.19% and completely waived fees on the product's first $10 billion of assets through August.
The launch of these ETFs pushed the price of Bitcoin (BTC) to its highest level since December 2021, with Bitcoin last at $46,303, up 0.77%.
Analysts advise caution
Investors and market participants closely watched the price difference between buying and selling an ETF, commonly known as the bid-ask spread. ETFs with tighter spreads are generally considered more attractive.
However, some traditional asset managers such as Merrill Lynch and Vanguard have said they have no plans to allow spot trading in Bitcoin ETFs, urging caution and reminding the crypto community that many still find cryptocurrencies risky.
Despite this caution, several crypto asset managers betting on Bitcoin ETFs recorded impressive inflows on the first day of the product's listing. Bitwise, for example, reported that $240 million had flowed into its spot Bitcoin ETF.
Fidelity and BlackRock received $227 million and $111.7 million, respectively. Franklin Templeton and 21 Shares saw inflows of $50.1 million and $65.3 million, respectively.
Valkyrie reported an inflow of $29.44 million on the first day of trading alone, celebrating what CEO Leah Wald described as a “successful trading day.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.