Bitcoin ETF - Summary after one week

It might not be visible on BTC/USD yet, but ETFs continue to consume huge amounts of bitcoins.

30,000 bitcoins in one week

The trading volumes during the first five days of trading are massive, with already over $10 billion of ETF shares traded.

Three bitcoin ETFs are already in the top 10 ETFs attracting the most money. In one week, the ETFs IBIT (BlackRock) and FBTC (Fidelity) are ranked fourth and fifth place, just behind the QQQ ETF, which gathers the top stocks of the NASDAQ.

Here are the net inflows into the Bitcoin ETFs after 5 days (in millions of dollars):

1. Blackrock + $1,231 million
2. Fidelity + $1,062 million
3. Bitwise +$396 million
   …
4. GBTC – $2,200 million

This gives us a total of more than $1.16 billion invested in ETFs.

As we explained in this article, it is the outflows from the GBTC ETF of Grayscale that are preventing the bitcoin from appreciating.

These $2.2 billion have left Grayscale due to its painful management fees. It’s only a matter of time before these millions find their way into the ETFs. We will then see bitcoin begin its forward march.

Here’s a summary of the net flows in the various ETFs, with the net outflows from the GBTC ETF in grey:

Bitcoin Spot ETF Flow – CHART after day 5 ($m)

Day 5 is the 2nd day of net outflows. pic.twitter.com/bvBKJRRtEQ

— BitMEX Research (@BitMEXResearch) January 19, 2024

BlackRock and Fidelity are taking the lion’s share with now 25,067 BTC and 20,507 BTC respectively. Adding the 581,274 BTC already invested in the GBTC ETF, we are at over 650,000 bitcoins under management.

The ETFs have absorbed 68,500 BTC since the launch of the ETFs, with a value of approximately $2.8 billion. This amount is partially offset by the 38,000 BTC that have left GBTC.

In other words, “institutionals” have absorbed 30,000 bitcoins in one week. Considering that less than 6,300 new bitcoins are created each week. A figure that, let’s not forget, will halve after the “halving” scheduled for late May!

Bitcoin ETFs are already weighing more than those backed by silver in the United States. Bitcoin simply takes second place among commodity ETFs…

Hodl!