- Bitcoin ETFs kick off their second month of trading on a promising note.
- Bitcoin ETFs achieve a new record high in net inflows.
- This milestone coincides with the ongoing crypto market rally and Grayscale outflows slowing down.
Since gaining approval in January, Bitcoin ETFs have sent shockwaves through the market, attracting billions in inflows and achieving major milestones. Yet, despite its impressive numbers and growing demand, Bitcoin failed to meet expectations, struggling to mark a new yearly high.
However, in a surprising twist, as Bitcoin quietly soars to a new high, surpassing the $52,000 mark, the ETFs are following suit, marking yet another major milestone.
Bitcoin ETFs Record-High Inflows
Bitcoin ETFs maintain positive momentum as it enters its second month in the market, having wrapped up the first month of trading with over $10 billion in assets under management (AUM).
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In lockstep with anticipation of inflows increasing, given that trading firms have completed their due diligence on the investment vehicles, BTC ETFs marked a new all-time high in net inflows, totaling $631 million.
While GrayScale slightly tipped the scales with its net outflow of $72.83 million, the remaining nine ETFs recorded a total net inflow of $704 million. BlackRock led the charge with its record-breaking numbers, bringing in over $493 million after registering $720 million in daily volume. Fidelity and Ark 21Shares closely followed suit, collectively reeling in $220 million in inflow.
The milestone comes on the heels of Bitcoin ETFs maintaining positive net inflows for 13 days straight, mirroring the ongoing rally in the crypto market, while GrayScale’s outflows stagnate.
GrayScale Outflows Slow down
GrayScale has yet to see a positive day. Since conversion, GrayScale Bitcoin Trust (GBTC) has experienced outflows amounting to a whopping $6.3 billion.
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While GrayScale stands out as a veteran compared to the other nine issuers, having operated a $27 billion bitcoin trust since 2013 before converting into an ETF, its 1.5% has significantly hampered its success in the market.
In stark contrast, BlackRock and Fidelity, which have recently dominated the ETF scene, each sport a competitive fee of 0.2%.
Nevertheless, better times loom on the horizon for GrayScale as outflows stabilize, with February 9 marking the lowest daily volume of capital withdrawals since the conversion.
On the Flipside
- Despite Grayscale’s wavering dominance, the firm leads with over 500,000 bitcoins.
- BTC ETFs recorded $628 million in net inflow on its first trading day.
- Bitcoin ETFs are the second-largest commodity ETF, trailing only behind Gold ETFs.
- Based on inflows, BlackRock and Fidelity’s Bitcoin ETFs have become two of the top ten ETFs this year.
Why This Matters
Thanks to its unwavering positive momentum, Bitcoin ETFs are charting a very positive course for the crypto industry. The surge in inflows and consistent positive net inflows have the potential to positively influence Bitcoin’s price and shape the future of crypto for mainstream investors.
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