Spot Bitcoin exchange-traded funds (ETFs), which launched last Thursday, have already attracted a significant amount of investor interest in their first two days, with total inflows reaching $1.4 billion, according to Bloomberg ETF analyst Eric Balchunas.
The funds experienced a total of 500,000 trades, racking up trading volumes of around $3.6 billion. However, Balchunas noted that these numbers may be adjusted due to transactions awaiting accounting settlement. Grayscale’s ETF, the Grayscale Bitcoin Trust (GBTC), experienced an outflow of $579 million during the period. After deducting the GBTC outflows, the net total inflows across all spot Bitcoin ETFs stood at $819 million.
The outflows from GBTC could be attributed to holders converting their shares following the U.S. Securities and Exchange Commission’s (SEC) approval of the ETF through a ruling change. Some GBTC holders are reportedly switching to lower-fee options from other fund managers. Grayscale is charging 1.50% while other asset managers like BlackRock are charging 0.25%. GBTC is one of the largest holders of Bitcoin, managing over $27 billion worth of the cryptocurrency. Shares of GBTC have been traded since 2013 but were not redeemable for Bitcoin until January 11.
Among the spot Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust topped the performance with $497.7 million total flows, followed by Fidelity Advantage Bitcoin ETF with $422.3 million and Bitwise with $237.9 million.
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