Bitcoin ETFs bought over 10,000 additional BTC on their fifth trading day, even as Grayscale saw continued outflows. Image by Thanasak Wongsuk, Vecteezy.
The fervor around the newly launched spot Bitcoin exchange-traded funds (ETFs) continued unabated on their fifth day of trading, with the funds scooping up an additional 10,667 BTC worth around $440 million.
Data compiled by CC15Capital showed that the lion’s share of the purchases was accounted for by BlackRock’s ETF, which added 8,700 BTC valued at nearly $358 million to its holdings. Overall, the 9 spot Bitcoin ETF funds, excluding Grayscale, have accumulated approximately 68,500 BTC since their debut, currently valued at $2.8 billion.
The Bitcoin inflows were partially offset by ongoing outflows from the Grayscale Bitcoin Trust (GBTC), however, which saw 10,824 BTC worth $445 million withdrawn. Almost 38,000 BTC have exited GBTC since its conversion to a spot ETF on January 11.
On a net basis, ETFs bought 10,667 #Bitcoin on Day 5.
— CC15Capital (@Capital15C) January 18, 2024
Trading Volumes Show Ongoing Demand for New Bitcoin ETFs
Bloomberg ETF analyst Eric Balchunas’ analysis of daily trading volumes highlighted a 34% jump for the so-called “Newborn Nine” spot ETFs, excluding GBTC, on their fifth day of operations. This defied typical post-launch patterns of declining activity, pointing to strong ongoing demand.
By the market close on January 18, the leading Bitcoin ETFs from BlackRock and Fidelity had each surpassed $1 billion in assets under management, highlighting their popularity among investors. In terms of weekly inflows, they ranked among the top 5 ETFs across all categories in the US.
Day 5 purchases for the funds may have been even higher, but data by ETF managers tends to lag trading volumes due to delays in purchase settlement. Of the asset managers, only Bitwise has so far reported its January 18 activity, confirming another 491 BTC added to its holdings.
This is interesting, the Newborn Nine actually saw a 34% jump in volume today vs yesterday. Normally with a hyped up launch you see volume steadily decrease each day post-launch, rare to see it reverse back up. All but one saw jump too but GBTC change flat so wasn’t a volatility… pic.twitter.com/f6xOsLRWjr
— Eric Balchunas (@EricBalchunas) January 18, 2024
Despite the continued appetite for spot Bitcoin ETFs, the divergence with GBTC outflows persists, leading to a conflict between the optimism around the new SEC-approved spot ETFs and the ongoing disinterest in GBTC from investors. For now, the fresh products appear to be driving broader adoption and inflows into Bitcoin.
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