Spot Bitcoin exchange-traded funds (ETFs) have hit a milestone $10 billion in assets under management (AUM) as the 30-day old products continue to garner interest from investors.
Data shows that since going live on Jan. 11, the Bitcoin ETFs have seen $2.8 billion worth of net inflows. Most of the approved ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, have seen inflows almost exclusively since their launch.
The only exception has been Grayscale Investments’ newly converted ETF – the Grayscale Bitcoin Trust (GBTC) – which has consistently clocked outflows over the last 22 trading sessions.
Bitcoin ETF Flow – 9th Feb
All data out. Strong day at $541.5m of net inflow
Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3
— BitMEX Research (@BitMEXResearch) February 10, 2024
With Grayscale holding fees steady at 1.5%, investors likely circulated their capital out of GBTC and into those funds with more competitive fee structures. However, on Feb. 9, the sell pressure on GBTC appeared to ease off, with outflows from the fund coming in at $51.8 million – the lowest amount since it first began trading as an ETF.
“I thought the Nine would get a bit weaker as GBTC outflows subsided but they’re getting stronger,” noted Bloomberg ETF analyst Eric Balchunas in an X post.
The $541 million worth of inflows on Friday were largely driven by flows into IBIT, FBTC and ARKB. The three funds alone accounted for $573 million worth of inflows, with ARKB joining the ranks of funds with over $1 billion in AUM.
Meanwhile, the price of Bitcoin also tracked higher, gaining 13% over the last week and trading at around $48,129 at press time.
Industry watcher and crypto OG WhalePanda likened the scenario to a flywheel effect, in which higher prices lead to more ETF inflows, which further leads to positive price action.
“The supply in this range is also dried up so early next week we’ll pass $50k and then the sky is the limit. Still a long way to go but we did $1.2 billion in net inflows this week. If we keep at ~$200 million per day we’ll pass previous ATH [all-time high] before halving,” said WhalePanda on X.