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Bitcoin ETFs in the United States Absorb Record Growth in Net Flows
Bitcoin spot ETFs in the United States absorbed another $477 million in net flows on Thursday, maintaining record growth despite a revival of outflows from the Grayscale Bitcoin Trust (GBTC).
Data and Analysis
Data compiled from BitMEX Research shows that Bitcoin ETFs have absorbed over $400 million of flows for five of the last seven trading days. Since launch, they’ve now soaked up over $4.5 billion in BTC – or $11.3 billion when discounting outflows from Grayscale. This indicates a non-stop flow for Bitcoin ETFs in the market.
Individual ETF Performance
About $330 million of flows went into BlackRock’s iShares Bitcoin Trust (IBIT), representing a top-five daily performance for the fund. The Bitwise Bitcoin ETF (BITB), the fourth largest of the nine newly launched ETFs, saw its best day besides launch day, absorbing $120.2 million in funds. These individual performances indicate the strong investor interest in Bitcoin ETFs.
Grayscale Bitcoin Trust Challenges
Opposite to BlackRock and Bitwise, Grayscale has suffered non-stop losses since converting into a Bitcoin ETF on January 11. The firm’s relatively high fees encouraged investors to find cheaper BTC investment options. Additionally, long-term investors have taken the opportunity to cash out of the fund since its share discount was restored to parity upon conversion.
Market Impact and Analyst Insights
Some onlookers suspect that recent approvals for selling GBTC shares have driven up outflows and possibly halted Bitcoin’s price momentum at $52,000. Given the ongoing demand for Bitcoin ETFs, some analysts have noted a major “supply/demand mismatch” in the market, indicating a potential impact on Bitcoin price levels.
Conclusion
With ETF demand continuing to rise, analysts and industry insiders anticipate a significant impact on the supply and demand dynamics for Bitcoin in the market, potentially resulting in price movements to accommodate the growing investor interest in Bitcoin ETFs.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
