Nine Bitcoin Spot ETFs Bounce Back, Overwhelm GBTC Outflows with $500 Million Inflows

Eric Balchunas hails the “strong week 3” of the Nine Bitcoin Spot ETFs, highlighting their $500 million net inflows over six days despite GBTC outflows. This sustained investor interest defies post-launch slowdown expectations, suggesting these ETFs could have “legs” in the market.

A Remarkable Comeback

Financial analyst Eric Balchunas has highlighted the impressive performance of the recently launched Nine Bitcoin Spot ETFs, noting their strong comeback from a dip last week and their ability to attract significant inflows despite outflows from the Grayscale Bitcoin Trust (GBTC).

In an X post on Saturday, the senior ETF analyst for Bloomberg wrote:

“Really something to see the Nine comeback from that dip last week and overwhelm GBTC outflows for net positive six days straight totaling half a bil. Typically there’s slow decline after big hyped launch. Strong week 3 (and inflows every single day) shows these ETFs have legs.”

Key points from Balchunas’ statement:

Spot bitcoin ETF issuers performance chart from January 11
  • Nine Bitcoin Spot ETFs: These refer to the nine new exchange-traded funds launched in the US that directly track the price of Bitcoin, unlike GBTC which invests in Bitcoin futures contracts.
  • Comeback from a dip: Balchunas emphasizes the resilience of these ETFs after experiencing a price decline in their first week of trading.
  • Overwhelm GBTC outflows: Notably, the inflows into the Nine ETFs outpaced the outflows from GBTC for six consecutive days, totaling $500 million. This suggests that investors are increasingly favoring the transparency and efficiency offered by spot ETFs over the futures-based structure of GBTC.
  • Strong week 3: The continued positive inflows throughout the third week of trading further bolster the argument that these ETFs have staying power and are not just a fleeting trend.

Defying Slowdown Expectations

Balchunas’ analysis suggests that the Nine Bitcoin Spot ETFs may be defying expectations of a post-launch slowdown. Typically, new investment products experience initial hype followed by a decline in interest. However, these ETFs seem to be attracting sustained inflows, potentially signifying a shift in investor sentiment towards this new way to gain exposure to Bitcoin.

It is important to note that the long-term implications of this trend remain to be seen. However, the early success of the Nine Bitcoin Spot ETFs is undoubtedly noteworthy and could potentially shape the landscape of Bitcoin investment products in the future.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.