Bitcoin ETF net inflows stay positive despite GBTC $600M exodus

Net inflows into the 10 US spot BTC funds dropped from a record $673 million Wednesday to $92 million Thursday


Artwork by Crystal Le


Near-record outflows from Grayscale’s spot bitcoin ETF offset another monster day for BlackRock’s fund, as the category’s net inflow total took a hit Thursday.

The Grayscale Bitcoin Trust ETF (GBTC) on Thursday bled $598 million, according to BitMEX Research data — the second-highest total in a single day since it converted to an ETF on Jan. 11. 

Inflows into BlackRock’s iShares Bitcoin Trust (IBIT) remained strong, breaking $600 million for a second straight day to offset the GBTC outflows. Competing offerings did not contribute much net inflows, with second-best Fidelity seeing $45 million from its bitcoin ETF, and others seeing little or none. 

Overall, net inflows for all 10 US spot bitcoin ETFs dropped from a record $673 million Wednesday to $92 million on Thursday, the data indicates. 

Read more: Bitcoin ETF inflows hit new peak Wednesday amid BTC price climb

The segment’s net flows — money moving into and out of the funds — have served as a new barometer for investors’ bitcoin demand since the Securities and Exchange Commission approved the long-awaited ETFs last month. 

Some industry watchers have excluded GBTC’s daily outflows while evaluating the ETF segment, in part given its significantly higher 1.5% fee and the expectation that a portion of investors would flee the fund.

GBTC launched in 2013, and many investors chose to hold onto their GBTC shares in recent years rather than sell them at a discount on the secondary market. The fund’s conversion to an ETF essentially eliminated that discount.

The 10-fund US bitcoin ETF category has absorbed GBTC’s roughly $8.4 billion of outflows in the past seven weeks — totaling net inflows of about $7.5 billion.   

Interest in the products — giving a wider set of investors easier access to BTC — has helped drive up the price of bitcoin above $60,000 in recent days, Bitwise chief investment officer Matt Hougan said during a Thursday interview with CNBC. He added that bitcoin’s supply-demand dynamic is “off the hook.” 

IBIT’s $604 million of net inflows on Thursday was just below its all-time high of $612 million, set on Wednesday. 

Outflows from Grayscale’s bitcoin fund were $216 million on Wednesday before jumping to nearly $600 million.  

Some industry watchers in X posts speculated that the outflows could be driven in part by bankrupt lender Genesis, which was granted approval earlier this month to offload roughly $1.6 billion worth of GBTC shares

A Genesis spokesperson did not immediately return a request for comment. 

The high level of assets leaving GBTC comes after outflows from the fund had slowed within the last week — totaling as low as $22 million on Monday. 

Sumit Roy, a senior analyst at, told Blockworks earlier this week that the initial selling by arbitrageurs and those wanting to move to cheaper funds is “largely over.”

“If we see bitcoin enter a correction or a steeper sell-off, GBTC’s outflows will likely pick up again,” he added. “This will remain the case as long as GBTC is so much more expensive than other spot bitcoin ETFs.”

Though there wasn’t a steep sell-off on Thursday, bitcoin’s price stalled on the day after it shot up to about $64,000 on Wednesday. The price of one BTC stood at roughly $62,000 at 6 am ET Friday — down nearly 1% from 24 hours prior. 

Lara Crigger, editor-in-chief of data firm VettaFi, said ETF investors have shown that fees and performance — in that order — are the top two factors they consider when choosing their allocations.

“With [10 funds] all tracking the same basic asset — spot bitcoin — Grayscale likely can’t distinguish itself through performance, which leaves fees,” she said. “With an expense ratio of 1.5%, Grayscale’s spot bitcoin ETF stands out on fees, but maybe not in the way an ETF issuer would hope.”

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