Bitcoin ETF snapshot: Record volumes lead to second-best weekly inflows

Assets under management in crypto investment products approaching the peak set in Nov. 2021, according to CoinShares

article-image

Art by Crystal Le

share

As bitcoin ETF trading volumes ascended to new levels last week, inflows did the same — then reversed course. 

Net inflows into the segment of 10 US funds turned negative on Friday as BlackRock’s fast-growing ETF was unable to fully offset the assets bleeding out of Grayscale Investments’ offering.

BlackRock’s iShares Bitcoin ETF (IBIT) tallied inflows of about $203 million on Friday, according to BitMEX Research data. 

Three other such funds — the Fidelity Wise Origin Bitcoin Fund (FBTC), the Bitwise Bitcoin ETF (BITB) and the Ark 21Shares Bitcoin ETF (ARKB) — contributed combined net inflows of roughly $150 million. 

But net outflows from the Grayscale Bitcoin ETF Trust (GBTC) — a fund priced significantly higher than competitors at 1.5% — amounted to $492 million on Friday, pushing the segment’s flows negative for the day.

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

Net outflows were $140 million Friday, marking just the eighth day of negative flows for the 10 funds in 35 trading days. The BitMEX Research data excluded flows from WisdomTree’s bitcoin fund — an ETF that has failed to see material flows following its first week of trading.

Loading Tweet..

Still, the Friday outflows came during a week in which the fund category saw its highest single day of net inflows — amounting to $673 million on Feb. 28.

The category enjoyed about $1.7 billion of net inflows last week — second only to the week spanning Feb. 12 to Feb. 16, during which that number eclipsed $2.2 billion. 

Industry watchers have closely tracked net flows into the US bitcoin products to get a sense of BTC demand from investors who previously did not have easy access to the asset. The Securities and Exchange Commission changed its years-long stance by allowing such products to come to market in January.  

Net inflows for the 10 offerings stands at nearly $7.4 billion to date despite GBTC weighing down that total with net outflows of about $8.9 billion.   

Heightened trading volumes, the new normal?

In terms of bitcoin ETF trading volumes, last week was by far a record. 

The trading volumes total for the 10 offerings was roughly $22 billion, Bloomberg Intelligence analyst Eric Balchunas said in a Friday X post

Trade volumes hit an all-time high of more than $7.6 billion on Feb. 28, as Thursday and Friday reflected the second- and third-best totals, respectively.

IBIT’s trading volumes exceeded $1 billion during all five days last week, peaking at about $3.3 billion on Wednesday. 

“Will this subside or is [the] new normal here?” Balchunas said. “We’ll know next [week].”

Read more: Bitcoin ETFs now hold nearly 4% of all bitcoin — and they’re not slowing down

Beyond just the US bitcoin funds, crypto investment products as a whole reached more than $30 billion last week, according to CoinShares data. 

This was, at times, the equivalent of half of global bitcoin daily trading volumes on trusted exchanges, CoinShares research head James Butterfill wrote in a Monday blog post.

Ethereum-focused products saw about $85 million of net inflows last week — its largest weekly total since July 2022.

Bitcoin’s price hovered around $65,000 at 7:30 a.m. ET Monday — up 27% from a week ago. ETH was at about $3,500, a nearly 15% rise over the past seven days. 

Crypto products’ assets under management stood at nearly $83 billion, Butterfill noted — just short of the $86 billion high set in November 2021.


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

Tags

Upcoming Events

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

ao cover.jpg

Research

Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.

article-image

The “fastest-growing ETF in history” has seen net inflows on every trading day since its Jan. 11 launch

article-image

Relm and Chainproof will provide insurance quotes to distributed validators

article-image

DLC.Link uses a Taproot-based Bitcoin multisig to let institutions mint dlcBTC, starting on Arbitrum

article-image

Pre-seed Bitcoin startup deals rose 360% in 2023, a TVP report shows

article-image

Circle’s new smart contract to allow holders of BlackRock USD Institutional Digital Liquidity Fund to redeem shares for its stablecoin

article-image

Uniswap says it was not surprised to receive a Wells notice given the SEC’s “abusive” use of power as of late