You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Bitcoin ETFs Net $255 Million Daily Inflows As Grayscale Sell-off Cools

On Monday, U.S. Bitcoin exchange-traded funds (ETFs) experienced a surge in investments as the price of Bitcoin (BTC) surged past the $43,000 mark.

Collectively, these ETFs received a net inflow of $255 million, encompassing all ten publicly traded spot ETFs introduced on January 11. This total includes the Grayscale Bitcoin Trust (GBTC), which is the oldest and largest among them, even though it had been consistently experiencing daily outflows in the nine-figure range since its transition into an ETF.

To be more specific, on Monday, BitMEX Research reported that Grayscale saw a net outflow of $191.7 million, marking a significant decrease from the previous week when the fund lost a substantial $640 million in assets.

In contrast, the Fidelity Wise Origin Bitcoin Trust (FBTC) alone attracted a net inflow of $208.2 million, surpassing Grayscale’s outflows.

The BlackRock iShares Bitcoin Trust (IBTC) came in a close second with net flows totaling $198.4 million, while Bitwise and Ark’s ETFs garnered $20 million and $17.2 million in net investments, respectively.

In total, all U.S. Bitcoin ETFs collectively received $1.01 billion in net inflows as of Tuesday. This has elevated the assets under management (AUM) of ETF providers beyond that of silver ETFs in the country, positioning Bitcoin as the second-largest ETF commodity, trailing only behind gold.

Grayscale Outflows Slow Down

Grayscale, which had previously witnessed a loss of over $5 billion worth of Bitcoin in its holdings, now appears to be experiencing a slowdown in its outflow rate. Analysts attribute this shift to some of its early clients taking the opportunity to cash out as the value of its shares was restored to parity with the underlying BTC holdings.

Another significant contributor to the selloff was the now-bankrupt crypto exchange FTX, which sold $900 million worth of GBTC shares once the fund completed its transition into an ETF.

The decreasing volume of the fund suggests that the selling pressure has subsided, with BlackRock’s IBIT ETF seeing trading volumes rivaling those of GBTC for two consecutive trading days this week. On Tuesday, Bitcoin spot ETFs collectively handled $806 million in trading volume, with over $350 million coming from both Grayscale and BlackRock’s funds.

One notable difference is the management fee charged by these funds, with BlackRock’s fee at 0.1%, significantly lower than Grayscale’s 1.5%. This has led many investors to transfer their assets from the Grayscale fund to the BlackRock fund.

Bitwise CEO Matt Hougan highlighted the advantages of Bitcoin ETFs’ low fees, saying, ” $100 million worth of bitcoin fits on a device the size of a thumb drive.” This underscores the benefits of being in the native digital realm, where costs are minimized.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Indonesia Watchdog Urges Finance Ministry to Re-Evaluate Crypto Tax Regime
04.03.2024By
Shido Token Plummets 85% Following Exploit on Ethereum Staking Contract
04.03.2024By
MagicEden Marketplace Ethereum is Live
04.03.2024By

Latest news

Indonesia Watchdog Urges Finance Ministry to Re-Evaluate Crypto Tax Regime
04.03.2024
Shido Token Plummets 85% Following Exploit on Ethereum Staking Contract
04.03.2024
MagicEden Marketplace Ethereum is Live
04.03.2024
Bitcoin NFTs Eclipse Ethereum with $168.5 Million in Weekly Sales
04.03.2024
BlackRock Spot Bitcoin ETF AUM Hits $10B Overtaking the iShares Silver Trust
04.03.2024
Bitcoin Price Crosses $65,000, Approaches All-Time High as Momentum Continues
04.03.2024
Bank for International Settlements Releases Executive Summary of Global Stablecoin Recommendations
03.03.2024
Traders Predict This Coin Can 25x By The End Of 2024
03.03.2024
$400 million in ETH Withdrawn from Blast L2 Network Following Mainnet Launch
03.03.2024
Ethereum Co-founder Joe Lubin Bullish on Crypto: “Momentum Unstoppable”
03.03.2024