Bitcoin ETFs: Major Differentiation Underway After Trading Day 4

Spot Bitcoin ETF trading day 4 has successfully been completed and the nascent sector has recorded significant netflow, a trend that is creating a liquidity strata among key issuers. 

Bitcoin ETF Products and Flow Outlook

According to Eric Balchunas, Senior Bloomberg ETF analyst, the net flows from the Bitcoin ETFs have surpassed $1.2 billion, especially after nine of the eleven ETF filers that received approval from the United States Securities and Exchange Commission (SEC), pulled in almost $914 million on January 18.

The gains recorded on this trading day made it the best since the spot Bitcoin ETFs started trading last week.

The inflows of the fourth trading day for Bitcoin ETFs overwhelmed the $450 million out of Grayscale’s GBTC. Altogether, the “Newborn Nine” have traded $5.4 billion in the four trading days while they have taken in $3 billion. BlackRock’s IBTC has now traded over $1 billion. Fidelity’s FBTC is following closely at second position while Bitwise BITB is on third position.

LATEST: Day Four was a good one, the ROLLING NET FLOWS grew to +$1.2b after the Newborn Nine pulled in $914b on Wed, by far their best day yet, overwhelming the $450 out of $GBTC. The 'Nine' have now taken in $3b and traded $5.4b in first four days (abnormally high #s). $IBIT is… pic.twitter.com/mYBLggYlYK

— Eric Balchunas (@EricBalchunas) January 18, 2024

Unlike the other ETF issuers that have seen significant inflows, Grayscale has been experiencing huge outflows which is attributed to its 1.5% fee. Many people are notably dumping GBTC, a move that is threatening the fund’s years of dominance. Additionally, the asset management firm has been moving its Bitcoin holding, igniting some speculations in the market. 

BlackRock Leads Huge BTC Netflow

Grayscale’s disappointing ratio of inflows to outflows was unexpected for an ETF issuer that performed exceptionally well on the first trading day of the Bitcoin ETFs. On the said day, Grayscale dominated the market with over $4 billion in trading volumes leaving the other Bitcoin ETF issuers with only a fraction of the market. BlackRock has hijacked the top position with the latest recorded figures.

As reported earlier by Coingape, BlackRock’s current Bitcoin holding is over 11,400 BTC in trust. This was only after the second trading day. With the volume of the market that the top investment asset management firm commands currently, its Bitcoin holding is now projected to have soared above 24,000.

Generally, the spot Bitcoin ETF market is showing great signals although the underlying cryptocurrency has not lived up to expectations in recent times. 

At the time of writing, Bitcoin is changing hands at $42,622.60, down 0.76% in the past 24 hours.