- Bitcoin Exchange-Traded Funds (ETFs) have achieved significant sales in the initial days of trading
- The sales recorded new highs compared to traditional ETFs.
- Grayscale’s Bitcoin ETF is experiencing a significant outflow of funds.
The approval of Bitcoin Exchange-Traded Funds (ETFs) by the U.S Securities and Exchange Commission (SEC) marked a momentous chapter for the cryptocurrency industry, creating a pathway for substantial inflows from traditional investment giants.
Since their debut, Bitcoin ETFs have captured the attention of the financial world, achieving an unprecedented milestone with billions in trading volume.
Bitcoin ETFs Record New Sales ATH
On Tuesday, January 16, Bloomberg analyst James Seyffart provided insights on the remarkable success of Bitcoin ETFs.
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Seyffart applauded the trajectory of the asset class, which has attracted approximately $10 billion in new capital in the three days since launch.
The cumulative gains of the new ETFs surpassed all other entrants of the past year, which only managed to accumulate a combined $450 million in trading volume. ETF analyst Eric Balchunas emphasized the magnitude of the success.
Balchunas further highlighted the outperformance when compared to the 2023 ETFs, spotlighting BlackRock’s $IBIT. The ETF has demonstrated significant market activity, accumulating over $700 million in inflows since its first day of trading.
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This surpassed the best-performing ETF from the 2023 class, which gathered just over $45 million in a similar timeframe, marking a new all-time high for the industry.
While the majority of the launched Bitcoin Exchange-Traded Funds (ETFs) are experiencing inflows, Grayscale’s GBTC bucked the trend, suffering a reversal in fortunes.
GBTC Records $1.1B Outflow
The anticipated outperformance of Grayscale’s Bitcoin ETF has been met with disappointment, as recent days record significant exit of funds.
As of January 16, an estimated $594 million was recorded, bringing the total outflows from GBTC to $1.173 billion since the shares’ debut.
Bloomberg Analyst James Seyffart asserted that the combined outflow could mark a significant impact on Bitcoin ETFs trajectory on day three, as the $600 million inflows into other Bitcoin ETFs may not be sufficient to offset the substantial outflow from $GBTC.
Grayscale’s GBTC boasts the highest Bitcoin ETF fee rate at 1.5%, which may be a contributing factor to the departure of investors.
On the Flipside
- Cathie Wood-owned ARK investment has commenced the purchase of its ARK 21Shares Bitcoin ETF (ARKB).
- Ethereum (ETH), Tron (TRX), Cardano (ADA), and several other altcoins have recorded notable gains in response to the Bitcoin ETF buzz.
- Despite the impressive performance of the newly-launched ETFs, Bitcoin’s trading price remains static.
Why This Matters
The surge in funds flowing into Bitcoin ETFs align with expert predictions that an approval will usher in new heights for the industry and set new precedents for the performance of the overall asset class.
Read more on funds inflows into Bitcoin ETFs:
BlackRock & Fidelity Top Bitcoin ETF Inflow: $1B in Two Days
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