Overview of Bitcoin Spot ETFs
The newly launched Bitcoin spot ETFs made a significant impact, recording the highest daily flows on their fourth day of trading. An impressive $913.6 million was absorbed on Wednesday alone, contributing to a total of $2.9 billion in assets under management for all similar funds that recently entered the market. This data, shared by Bloomberg ETF analyst Eric Balchunas, excludes flows related to the Grayscale Bitcoin Trust (GBTC).
“The wave of capital brings assets under management for all such funds that began trading last week up to $2.9 billion.”
Market Trends Post ETF Conversion
Following the conversion of the Grayscale Bitcoin Trust into an ETF on January 11, the fund has experienced notable outflows as investors have taken the opportunity to cash in on long-held Bitcoin or transition to newer and more cost-effective Bitcoin ETFs offered by BlackRock, Fidelity, and other institutions. On Wednesday specifically, Grayscale witnessed $450.6 million in outflows, marking a total of $1.6 billion in net outflows since the ETF conversion.
“Indeed, similar Bitcoin funds/investment products have suffered in the wake of the launch.”
- ProShares Bitcoin Strategy ETF assets decreased from $2.28 billion to $1.86 billion following spot ETF approvals.
- MicroStrategy, a major corporate Bitcoin holder, dropped 25% in value to $500 since last Thursday.
- Bitcoin mining companies like CleanSpark experienced corrections exceeding 30%.
- Bitcoin’s price itself has fallen by approximately 11% to $41,250 compared to the previous week.
Despite these fluctuations, the newly launched ETFs such as the iShares Bitcoin Trust are yet to post a positive trading day. Furthermore, Coinbase, a key Bitcoin custodian for many ETF providers, has also faced challenges, recording a 19% decline year-to-date.
