After a brief period of investor jitters, the U.S. spot Bitcoin ETF (exchange-traded fund) market seems to be regaining stability. According to the HODL15Capital, the ten newly launched spot Bitcoin ETFs witnessed a combined $418 million net inflow on March 26th. This signifies a major turnaround from the preceding five consecutive days of net outflows.
Prominent Bitcoin ETF providers Fidelity and BlackRock drove this renewed interest through substantial inflows. Fidelity’s Bitcoin ETF attracted a mammoth $279.1 million inflow – its largest single-day inflow since March 13th. Concurrently, Fidelity added around 4,000 BTC to its holdings. It marked the second day with inflows exceeding $260 million.
BlackRock’s iShares Bitcoin Trust (IBIT) also experienced positive $162.2 million inflows. However, these remain lower compared to earlier March when daily inflows averaged over $300 million. Other notable inflows include Ark 21Shares Bitcoin ETF ($73.6 million), Invesco Galaxy, Franklin Templeton, and Valkyrie’s respective Bitcoin ETF offerings (over $26 million each).
Grayscale Loses Ground Amid Bitcoin ETFs Surge
While the overall spot Bitcoin ETFs outlook is positive, Grayscale’s Bitcoin Trust (GBTC) continued witnessing outflows. On March 26th, the trust recorded a $212 million daily outflow. Nevertheless, this negative figure couldn’t outweigh competitors’ combined inflows. Since January 11th, 2024, when Grayscale transitioned from a trust to an ETF, it has faced a major setback. It lost 277,393 BTC, roughly $19.5 billion at current rates. This represents a significant decline in its holdings.
Beyond individual players, a recent Bloomberg post by senior ETF analyst Eric Balchunas highlights Bitcoin ETFs’ impressive first 50 trading days. His March 26th analysis showed a chart with the 30 largest asset funds during their initial launch period. Remarkably, four Bitcoin ETFs made the global funds list. BlackRock’s IBIT and Fidelity’s FBTC led the pack.
Balchunas further emphasized these Bitcoin ETFs’ dominance. Even the 18th-ranked Bitwise Bitcoin ETF (BITB) by assets under management holds more than the world’s leading gold ETF, SPDR Gold Shares (GLD). The recent influx into spot Bitcoin ETFs and positive industry data suggest growing investor appetite for this new asset class. While Grayscale struggles, the overall spot Bitcoin ETF market sentiment seems upward.
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