Bitcoin ETF Inflows Counterbalance GBTC Outflows
While the outflows from Grayscale’s GBTC are substantial, the nine newly launched spot bitcoin ETFs saw inflows of $1.8 billion last week. The BlackRock IBIT led the influx with $744.7 million, closely followed by Fidelity’s FBTC with $643.2 million. Since their launch on January 11, these nine ETFs have brought in approximately $5.8 billion in inflows, while GBTC recorded $5 billion in outflows, resulting in a net inflow of $759.4 million.
Butterfill believes that the price decline of Bitcoin, which is down around 14% from its peak of $49,000 on the day the spot bitcoin ETFs were introduced, can be attributed to the acquisition of bitcoin seed capital before January 11.
Unsurprisingly, Bitcoin investment products accounted for the majority, witnessing net outflows of $479 million. Ether investment products saw outflows of $39 million, while Polkadot and Chainlink funds experienced losses of $0.7 million and $0.6 million, respectively. However, Solana products defied the trend with inflows worth $3 million. In addition, blockchain equities continued a ten-week inflow streak, attracting $17 million.
In terms of geographical distribution, U.S.-based funds led the way with net outflows of $409 million, followed by Switzerland and Germany with outflows of $60 million and $32 million, respectively. Butterfill suggests that the substantial outflows from Grayscale in the U.S., amounting to $5 billion, likely triggered additional outflows from other regions.
As always, it is important to note that cryptocurrency markets are highly volatile and subject to rapid changes. These trends may evolve rapidly, and investors should exercise caution and conduct thorough research.