- Fidelity’s Bitcoin ETF dominates with $378.7M inflows, leading to a $886.6M surge in US spot Bitcoin ETFs.
- Grayscale Bitcoin Trust faces $17.8B outflows despite a $28.2M inflow day since its spot ETF conversion.
- Bitcoin ETFs hit $1.04B in March, a day before BTC’s all-time high of $73,679.
The US spot Bitcoin exchange-traded funds (ETFs) reached a noteworthy milestone on their second-highest joint net inflow day, reaching $886.6 million.
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the inflow surge, garnering the highest amount among the ETFs with $378.7 million in net inflows. Following closely was BlackRock’s iShares Bitcoin Trust (IBIT), which saw $274.4 million in net inflows. The ARK 21Shares Bitcoin ETF (ARKB) also performed well, securing $138.7 million in net inflows.
These funds reached a record $1.04 billion on March 12, this inflow activity therefore represents the second largest for the ETFs. Interestingly, one day following this record inflow on March 13, Bitcoin hit an all-time high of $73,679 in price.
Grayscale Bitcoin Trust and Market Reactions
Grayscale Bitcoin Trust (GBTC) reported a rare inflow day of $28.2 million, its seventh since converting to a spot ETF in January. Despite this positive inflow, GBTC has faced net outflows totalling over $17.8 billion. The outflows have been attributed to its high management fee of 1.5% and a narrowed discount, prompting many investors to exit.
Initially, Grayscale’s Bitcoin fund held 620,000 BTC when spot Bitcoin ETFs launched. However, this number has now decreased to 285,481 BTC, equivalent to $20.2 billion, as per the Apollo Bitcoin Tracker.
ETF Market Dynamics and Bitcoin Price Surge
Despite critics’ claims that Bitcoin ETFs would see limited demand, recent data suggests otherwise. ETF Store president Nate Geraci countered these critics on X, highlighting the substantial inflows. He pointed out that many believed all potential retail investors had already bought Bitcoin, but the recent inflows challenge this notion.
Conversely, some Bitcoin ETFs from issuers like Invesco Galaxy, Franklin Templeton, WisdomTree, and Hashdex did not record any demand on June 4. This varied performance highlights the competitive and fluctuating nature of the Bitcoin ETF market.
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