US Spot Bitcoin ETFs See Strong Inflows as GBTC Experiences Major Outflows

In a notable development for the cryptocurrency market, US spot Bitcoin exchange-traded funds (ETFs) have recorded their sixth consecutive day of positive performance. On Thursday, these ETFs collectively attracted approximately $65 million in new capital, underscoring a growing institutional interest in Bitcoin.

Key ETF Performance

• BlackRock’s iShares Bitcoin Trust (IBIT): Leading the charge, BlackRock’s IBIT saw an impressive influx of around $75 million, marking a significant contribution to the day's total inflows.
• Fidelity’s Bitcoin Fund (FBTC): Fidelity’s FBTC added roughly $9 million, reflecting strong investor confidence in the fund.
• ARK Invest/21Shares Bitcoin ETF (ARKB): This ETF attracted nearly $8 million in new investments, further highlighting the positive trend across the sector.
• Other ETFs: WisdomTree’s Bitcoin fund (BTCW), Grayscale’s Bitcoin Mini Trust (BTC), and VanEck’s Bitcoin ETF (HODL) collectively garnered over $12 million in new capital.

Grayscale’s Bitcoin Trust (GBTC) Faces Outflows

In contrast, Grayscale’s Bitcoin Trust (GBTC), which is known for its higher management fees, experienced substantial outflows on Thursday. The fund saw over $28 million in withdrawals. Since its conversion into an ETF, GBTC has faced nearly $20 billion in total outflows. Despite this, outflows have moderated over the past two weeks, with Thursday’s withdrawal being the lowest for the month at around $10 million.

BlackRock’s Growing Bitcoin Holdings

BlackRock's aggressive strategy has significantly increased its Bitcoin holdings. The firm’s IBIT now holds over 350,000 BTC, making it the third-largest Bitcoin holder globally, trailing only behind Satoshi Nakamoto and Binance. This substantial acquisition has drawn considerable institutional interest from major firms such as Morgan Stanley and Goldman Sachs.

• Morgan Stanley: Last week, Morgan Stanley reported holding approximately $187 million in IBIT. Notably, the bank has become the first Wall Street giant to permit its financial advisors to recommend Bitcoin ETFs to select clients.
• Goldman Sachs: Goldman Sachs has also made a significant investment in US spot Bitcoin ETFs, including around $238 million in IBIT.

Conclusion

The recent performance of US spot Bitcoin ETFs indicates a robust and growing interest in Bitcoin investments. While GBTC continues to face challenges with outflows, other ETFs are seeing sustained inflows, particularly BlackRock’s IBIT, which is experiencing significant institutional support. This positive trend for Bitcoin ETFs highlights the increasing acceptance and integration of cryptocurrency within traditional financial frameworks.

August 2024, Cryptoniteuae