Bitcoin ETF asset race: Bitwise, Fidelity snag flow lead while money leaves GBTC

The first spot bitcoin ETFs in the US attracted $655 million in day-one net flows, according to initial Bloomberg Intelligence data

article-image

Fidelity director of global macro Jurrien Timmer | DAS 2022 by Blockworks

share

Spot bitcoin ETFs by Bitwise and Fidelity saw higher day-one inflows compared to their competitors, according to initial data from Bloomberg Intelligence.

The Bitwise and Fidelity products saw net inflows of $238 million and $227 million, respectively, Bloomberg Intelligence analyst James Seyffart said in a Friday afternoon X post. 

About $112 million in net flows entered BlackRock’s iShares Bitcoin Trust (IBIT), he added. 

Loading Tweet..

BitMex research posted similar flow figures about a few hours prior — though that excluded roughly $29 million in flows for Valkyrie’s spot bitcoin fund.  

Meanwhile, Grayscale Investments’ Bitcoin Trust ETF (GBTC) saw net outflows of roughly $95 million, the Bloomberg Intelligence data shows. 

Industry watchers told Blockworks earlier this week they expected the newly converted fund — with a substantially higher fee than rival offerings, at 1.5% — to see outflows over time. 

Fellow Bloomberg Intelligence ETF analyst Eric Balchunas shared net flow figures similar to Seyffart in an earlier X post, but noted the data represents an “incomplete picture.” 

A Bitwise spokesperson confirmed to Blockworks the firm’s data indicates that roughly $240 million entered into its spot bitcoin ETF Thursday. 

Representatives for Grayscale and Fidelity declined to comment on specific day-one flow figures outside of public disclosures. A BlackRock spokesperson did not immediately return a request for comment. 

Read more: BlackRock bitcoin ETF is outperforming bitcoin

Sumit Roy, a senior analyst at ETF.com, said the $655 million in day-one net flows was a bit “underwhelming” considering the $4.5 billion or so in trading volumes seen Thursday across the 10 spot bitcoin ETFs.

“But the data isn’t complete, so in the coming days we could — and probably will — see that number tick higher,” Roy said. 

GBTC accounted for roughly half of the spot bitcoin ETF trading volumes Thursday, according to Yahoo Finance data. BlackRock’s IBIT saw roughly a quarter of the volumes for such funds. 

Read more: Spot bitcoin ETF volumes eclipse $4.5B on first day of trading

The latest Bloomberg Intelligence flow data suggests much of the day-one trading activity in bitcoin ETFs was short-term in nature, Roy explained.

“One person could buy and sell a bitcoin ETF ten times in a day, inflating the volume numbers,” he said. “But unless they hold onto their shares overnight, that activity won’t translate into flows.” 

VanEck analysts wrote last month they estimate spot bitcoin ETFs to see $2.4 billion of inflows in their first three months on the market. Galaxy Digital research associate Charles Yu wrote in an October report he expects such funds to bring in about $14 billion in their first year

Longer-term, certain bitcoin bulls expect tens or hundreds of billions of dollars to enter spot bitcoin ETFs in the coming years, Roy noted. 

Bitwise Chief Investment Officer Matt Hougan has said he believes spot bitcoin ETFs could see $55 billion in net flows in their first five years on the market.  

Read more: The crypto world reacts to day one of bitcoin spot ETF trading

“In that context, a first-day haul of $655 million isn’t great, but it’s not horrible either,” Roy said. “It’s still early, and we could see more substantial inflows in the coming weeks or months.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit