Bloomberg ETF analyst Eric Balchunas reported significant interest in newly launched Spot Bitcoin Exchange-Traded Funds (ETFs), with inflows totaling $1.4 billion in just the first two sessions. This remarkable figure resulted from approximately 500,000 trades, cumulatively valued at $3.6 billion, according to Bloomberg's data. This trading volume encompasses both the inflows and outflows of funds. However, Balchunas noted that these numbers might be subject to adjustments pending the final accounting settlement of the transactions.
One notable observation was the outflow from Grayscale’s ETF, the Grayscale Bitcoin Trust (GBTC), which saw $579 million leave during the same period. When accounting for GBTC’s outflow, the net inflow across all products stood at $819 million. This early momentum aligns with projections made by ETF analyst James Seyffart, who had previously estimated that a Bitcoin ETF could draw approximately $10 billion in its first year.
The outflows from GBTC could be attributed to shareholders converting their holdings following the U.S. Securities and Exchange Commission’s (SEC) approval of the new ETFs, which involved a change in ruling. Anthony Scaramucci, the founder of SkyBridge Capital, suggested in a Bloomberg interview that some GBTC investors are realizing losses and transitioning to ETFs with lower fees.
GBTC, one of the most substantial Bitcoin holders, manages over $27 billion in the cryptocurrency, as reported by Arkham Intelligence, a blockchain analytics platform. GBTC shares have been on the market since 2013, but it wasn't until January 11 that they became convertible into Bitcoin. This development marked a significant milestone for GBTC and its investors.
The week's standout performers among the new Bitcoin ETFs were BlackRock's iShares Bitcoin Trust, with total inflows of $497.7 million, followed by the Fidelity Advantage Bitcoin ETF at $422.3 million, and Bitwise with $237.9 million in inflows. Despite Bitcoin's price rising by 75% in the 90 days preceding the ETF approvals, the cryptocurrency experienced a 6.8% decline between January 11 and 12, indicating a sell-off following the SEC's approval. At the time of this writing, Bitcoin is trading at $42,856, marking a 0.77% decrease over the past 24 hours.
