The Growth of Bitcoin ETFs
Bitcoin spot ETFs in the United States have seen significant growth, with an additional $477 million in net flows recorded on Thursday, despite some challenges faced by the Grayscale Bitcoin Trust (GBTC). According to data from BitMEX Research, Bitcoin ETFs have witnessed over $400 million in flows for five of the last seven trading days. Since their inception, these ETFs have accumulated more than $4.5 billion in BTC.
Performance of Various Bitcoin ETFs
About $330 million of flows have entered BlackRock’s iShares Bitcoin Trust (IBIT), marking one of the fund’s top-five daily performances. The Bitwise Bitcoin ETF (BITB) has also shown strong performance, absorbing $120.2 million in funds on a recent trading day, prompting Bitwise CEO Hunter Horsley to express his gratitude to investors.
Contrary to the success of BlackRock and Bitwise, Grayscale has experienced continuous losses since transitioning to a Bitcoin ETF. The firm’s high fees have led investors to explore more cost-effective BTC investment options, resulting in outflows from the Grayscale Bitcoin Trust.
“With ETF demand… we’re just eating through the Available For Sale supply at $52k until there’s none left,” – Onramp COO Jesse Myers
Analysts, such as Bitwise CIO Matt Hougan, have pointed out a significant imbalance in supply and demand for Bitcoin, especially with the surge in ETFs. This situation highlights the need for a price adjustment to meet the market equilibrium.
