Bitcoin ETFs Receive Over $700 Million in New Funds, Offsetting GBTC Outflows
Last week, Bitcoin investment vehicles saw a significant net inflow of over $700 million, according to a report published by CoinShares. These inflows were primarily directed towards the new Bitcoin ETFs, BlackRock’s IBIT and Fidelity’s FBTC, offsetting the ongoing outflows from Grayscale’s GBTC.
Performance of New Market Entrants
The two leading new Bitcoin ETFs, IBIT and FBTC, recorded significant inflows, with $884 million for IBIT and $674 million for FBTC. These figures represent a slight increase compared to the previous week in terms of dollars.
Evolution of GBTC Outflows
In the meantime, investors withdrew approximately $927 million from GBTC, marking a notable decrease compared to the previous week’s $2.2 billion outflows. “The data underscores a significant reduction in the momentum of these outflows in recent weeks,” noted James Butterfill, Head of Research at CoinShares, in the report.
Impacts of New ETFs on the Market
Since their launch in the United States on January 11, outflows from existing Bitcoin funds like GBTC have been a cause for concern. After an initial wave of withdrawals, primarily driven by profit-taking and the sale of GBTC holdings by FTX, outflows have slowed down, while inflows into new funds remain steady. As of the end of last week, the new Bitcoin ETFs had amassed $7.7 billion in funds, more than offsetting the $6 billion outflows from existing funds.
