NFTs

Two Bitcoin ETFs Land In Top 10 January ETF Inflows

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BlackRock and Fidelity saw $5B of net flows combined and ranked 8th and 10th, respectively.

BlackRock and Fidelity’s spot Bitcoin ETF products placed in the Top 10 among all ETFs by inflows during January, reports U.S. financial services company Morningstar.

Net flows – deposits minus withdrawals – into BlackRock’s IBIT fund reached $2.7B, whereas Fidelity’s FBTC accounted for $2.3B.

Along with BlackRock and Fidelity, nine other spot Bitcoin ETFs launched on Jan. 11 after months of speculation and a botched tweet from the SEC.

ETF January Flows chart
ETF January Flows

Unlike the other eight funds in the Top 10, both Bitcoin ETFs went live on Jan. 11, meaning they have been trading for less than a full month. This indicates significant interest from investors, notwithstanding Bitcoin’s volatile price action in the weeks following the ETF launch.

Bitcoin tagged $48,494 on Jan. 11, the day the ETFs started trading, only to plummet in the days after due to alleged selling from Bitcoin miners. It has since recovered after bottoming at $38,740 on Jan. 23 and currently trades for $42,819, according to Coingecko.

BTC Price chart
BTC Price

New Bitcoin ETFs help to counter GBTC sales

Not all is rosy in the spot Bitcoin ETF world, however, with Grayscale’s GBTC witnessing the second-largest ETF outflow of January, reaching $5.7B.

The closed-end fund converted to an ETF, and investors could exit their positions at close to the net asset value (NAV). Since late January, outflows have slowly receded from $640M on Jan. 22 to $255M on Jan. 29, as per James Seyffart, an analyst at Bloomberg.

The number could see another spike, however, as Genesis – a beleaguered sister company of Grayscale – files to sell off $1.4B in GBTC shares.

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The other nine spot Bitcoin ETFs helped to offset the outflows from GBTC, with total flows reaching $1.45B, according to BitMex Research.

“Really something to see the Nine come back from that dip last week and overwhelm GBTC outflows for net positive six days straight totaling half a bil,” wrote Eric Balchunas, senior ETF analyst for Bloomberg.

He went on to conclude that “Typically there’s slow decline after a big hyped launch. Strong week 3 (and inflows every single day) shows these ETFs have legs.”


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