- Bitcoin spot ETF market tops $4.69 billion in net flows, setting a record.
- Grayscale faces $6.856 billion outflow after converting to spot ETF, highlighting competition and high fees.
The direct Bitcoin ETF market has broken a new record, with net flows exceeding $4.69 billion.
Since its emergence more than a month ago, this market has shown steady growth in its cumulative net flows. According to data from Crypto.com Research & Insights, as of February 15, direct Bitcoin ETFs together totaled inflows of $477 million.
This capital increase coincides with a spike in the price of Bitcoin (BTC), which reached its yearly high of $52,820.07 after rising more than 10.87% in the last week.
Both trading volume and market capitalization experienced increases of 1.2% and 3.6%, reaching $1,029,309,283,609 and $35,470,175,600, respectively.
Bitcoin Direct ETF Details
Aside from Grayscale’s GBTC, most of the direct Bitcoin ETFs in the U.S. market have experienced positive net inflows since their launch.
The Crypto.com Research report indicates that BlackRock leads with the largest Assets Under Management (AUM), totaling $5.173 billion so far. It is followed by the Fidelity Bitcoin Trust (FBTC) with $3.654 billion in net flows, and Ark 21Shares’ ARKB with $1.184 billion.
🔎 Latest data shows US Spot #Bitcoin ETFs with a net inflow of US$477M yesterday. pic.twitter.com/FQr512EHJf
— Crypto.com Research & Insights (@cryptocom_rni) February 16, 2024
These three companies stand out for surpassing the $1 billion threshold in net flows, although other products have also seen considerable inflows. Bitwise’s BITB racked up $996 million in net flows, while others, such as Valkyrie and VanEck, totaled $534 million in net flows according to the most recent data.
Challenges for Grayscale
Grayscale, despite holding the most Bitcoin among all direct Bitcoin ETF issuers, faces the largest negative net flow, attributed to capital outflows from GBTC.
Since the approval to convert its product from a Trust to a direct ETF, it has seen a $6.856 billion drawdown, with $525 million in the last week alone and $175 million in the last 24 hours through Feb. 15.
Despite the decline in daily net flows, uncertainty persists, with investors possibly continuing to avoid Grayscale, in part because of its comparatively higher fees.
