BlackRock and Bitcoin ETFs absorb massive outflows from Grayscale

Bitcoin Spot ETFs have recorded net inflows of $759.4 million since their launch on January 10, despite outflows of $5 billion from the Grayscale Bitcoin Trust (GBTC).

Bitcoin ETFs Absorb the Massive Outflows from Grayscale

Since the launch of the spot ETFs on January 10, these new funds have collectively recorded about $5.8 billion in inflows. Meanwhile, $5 billion has exited from GBTC. In total, the Bitcoin ETF ecosystem thus records significantly positive net inflows of $759 million.

This impressive result shows that the market’s appetite for Bitcoin remains strong, despite the massive redemptions from GBTC. Importantly, it proves that other ETFs manage to capture a substantial portion of the capital exiting the Grayscale fund and even more.

However, although GBTC maintains its dominant position in terms of total weekly outflows, its impact seems to be diminishing. Data reveal a decrease in the amount of daily outflows from the fund over the past week.

According to James Butterfill of CoinShares, this indicates that the effect of the transition from GBTC to spot ETFs is beginning to stabilize. Before January 10, GBTC held about 621,000 BTC. Today, its balance has fallen to 506,000 BTC, a decrease of 19%.

Stellar ETFs

On the inflow side, the ETFs from BlackRock and Fidelity’s FBTC stand out with exceptional performances.

On January 26, IBIT recorded an impressive net inflow of $87 million, bringing its total to $2.2 billion. Similarly, FBTC attracted $100 million on the same day, thus accumulating a total of $1.9 billion since its launch.

Despite the persistent massive outflows from GBTC, investor demand for Bitcoin spot ETFs remains robust. The inflows into these new funds significantly offset the $5 billion exited from Grayscale. Encouragingly, the impact of the outflows from GBTC now appears to be waning.