Total net flows in the first five days of trading for the new U.S. spot Bitcoin ETF are now nearly $1.2 billion, with Fidelity joining BlackRock in the $1 billion-plus inflow club yesterday, according to data from BitMEX Research.
Bitwise currently ranks third with $395.5 million worth of inflows, followed by Ark Invest/21Shares and Invesco with a total of $320.9 million and $194.9 million respectively. Overall, 10 of the 11 ETFs have seen inflows totaling $3.4 billion year to date, while Grayscale has seen outflows of $2.2 billion. The remaining funds all have total inflows of less than $100 million.
Total product flow. Image: BitMEX Research.
Spot Bitcoin ETF records largest net outflow day since launch
Overall, spot Bitcoin ETFs recorded net outflows of $131.6 million yesterday, the largest to date and with GBTC significantly outpacing inflows from other funds.
Even though 10 of the 11 ETF products generated inflows worth a total of $447.9 million, it was not enough to overcome $579.6 million in outflows from the Grayscale Convertible Fund, according to BitMEX Research.
Fidelity (FBTC) and BlackRock (IBIT) spot Bitcoin ETFs led inflows yesterday, attracting $177.9 million and $145.6 million, respectively. Invesco (BTCO) recorded the third largest inflow of the day with $59 million, followed by Ark Invest/21Shares (ARKB) with $41.8 million and Bitwise (BITB) with $20.1 million. Flows for the remaining ETFs were unchanged on Thursday.
Yesterday was the second day of net outflows, and on Wednesday net inflows returned to $474 million. There were also outflows of $40.5 million on Tuesday, compared with $229.4 million in inflows on the second day and $628.5 million on the first day.
Daily product flow. Image: BitMEX Research.
Grayscale, BlackRock, and Fidelity continue to dominate volume and AUM.
Spot Bitcoin ETFs from Grayscale, BlackRock and Fidelity continued to dominate trading volume yesterday, adding about $2.1 billion in volume across all funds, bringing their cumulative total to $14 billion, according to Yahoo Finance data compiled by The Block. We got close.
Grayscale’s GBTC contributed nearly $1.1 billion to trading volume on Thursday, while BlackRock’s IBIT and Fidelity’s FBTC generated $416 million and $367 million, respectively.
The Big 3 are also dominant in terms of assets under management, according to the latest data compiled by The Block. GBTC currently shows AUM of $25.6 billion, while IBIT and FBTC have $1.1 billion and $875 million, respectively.
Taking this into account, Gabor Gurbacs, Director of Digital Asset Strategy at VanEck, said:“ Bitcoin 
BTC
-2.60%
ETFs are a force of nature. They hold 25 times the size of El Salvador’s Bitcoin holdings, or a similar size to Tether’s reserve Bitcoin assets, 39% of MicroStrategy’s $8 billion, Silver ETFs Outperformed… “In just one week.”
Bitcoin price may fall and come under further pressure due to GBTC profit taking.
Bitcoin price briefly fell below $41,000 yesterday due to net outflows from spot ETFs, before recovering slightly. According to The Block’s price page, Bitcoin is currently trading at $41,379. That’s a decline of 3% in the last 24 hours and a decline of about 10% since the ETF was launched last Thursday.
BTC/USD price chart. Image: Block/TradingView.
The largest cryptocurrency by market capitalization could put additional pressure on its price if GBTC investors continue to take profits, according to analysts at JPMorgan. Last week, JPMorgan estimated that GBTC outflows could amount to up to $3 billion as speculative investors are likely to profit.
“If the previous $3 billion estimate was accurate and $1.5 billion has already exited, there could be an additional $1.5 billion left to exit the Bitcoin space through profit-taking on GBTC, which could lead to Bitcoin volatility in the coming weeks. This could put additional pressure on prices,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note on Thursday.
GBTC investors, who had purchased the fund’s shares at a significant discount to their net asset value over the past year for a potential ETF conversion, are “exiting the Bitcoin space entirely rather than moving into the Bitcoin space after the ETF conversion,” he said. It took profits, analysts said, as a “cheaper spot Bitcoin ETF.”
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