Four Bitcoin Spot ETFs See Unprecedented 14-Day Inflow Streak, But Grayscale Flounders

Bitcoin and an ETF emblem

Four Bitcoin spot ETFs – iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB) – have recorded remarkable consistency, attracting inflows for all of their first 14 trading days. This stands in stark contrast to the Grayscale Bitcoin Trust (GBTC), which has experienced daily outflows since its conversion into an ETF.

All of the new ETFs are doing well but these 4 are doing really well. $IBIT, $FBTC, $ARKB, $BITB.

— James Seyffart (@JSeyff) February 1, 2024

Consistent Inflows

The recent launch of Bitcoin spot ETFs has sparked a remarkable phenomenon: four such funds, the iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB), have all experienced an unprecedented 14-day streak of consistent inflows since their debut. This trend stands in stark contrast to the ongoing outflows plaguing the Grayscale Bitcoin Trust (GBTC) since its conversion into an ETF.

This collective success of spot ETFs might signify a shift in investor sentiment towards these products, which offer direct exposure to the underlying Bitcoin asset unlike GBTC’s futures-based structure. Several factors could contribute to this preference: lower fees compared to GBTC, direct ownership of the asset instead of futures contracts, and the official SEC approval fostering greater trust and transparency.

Grayscale Outflows

On the other hand, the Grayscale Bitcoin Trust continues to face daily outflows since its conversion. This could be attributed to the erosion of its premium over net asset value (NAV), which previously attracted investors but disappeared with the ETF conversion. Additionally, the unlocking of previously restricted shares has likely added to the selling pressure.

BlackRock Not Behind

On Thursday, Blackrock‘s $IBIT exhibited its giant status by surpassing Grayscales’s $GBTC as reported by Bloomberg’s James Seyffart:

“Still some after hours trading left but looks like BlackRock’s $IBIT is the first ETF to trade more than Grayscale’s $GBTC in a single day. Total trading today was kind of a dud though at $924 million — first day below $1 billion in dollar volume for the group since launch.”

15-day volume chart for Bitcoin spot ETF issuers

These contrasting trends highlight the evolving landscape of Bitcoin investment products. While the long-term implications remain to be seen, the early success of spot ETFs and the struggles of GBTC suggest a potential preference for more direct, transparent, and cost-effective ways to gain exposure to Bitcoin. The coming months will reveal whether this initial fervor for spot ETFs translates into sustained investor interest and reshapes the Bitcoin investment landscape.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.