Ten spot Bitcoin ETFs were launched on January 11th.
Eight days later, two funds topped the list in terms of net inflows: BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity Investments' Wise Origin Bitcoin Fund (FBTC).
BlackRock's assets for sale reached $1 billion in four trading days, while Fidelity's fund reached that milestone on the fifth trading day.
read more: BlackRock Beats Spot Bitcoin ETF Rival in Race to Win $1 Billion in Assets
Since Thursday, IBIT and FBTC have seen net inflows of about $1.2 billion and nearly $1.1 billion, respectively, according to data from Bloomberg Intelligence. Both funds have each generated more than $2 billion in trading volume since their inception.
IBIT's trading volume on Friday increased by about $430 million, while Fidelity's funds had a total volume of about $415 million on Friday, according to Yahoo Finance data.
“This is just the beginning,” Robert Mitchnick, head of digital assets at BlackRock, told Blockworks via email. “We have a long-term commitment focused on providing investors with access to iShares' high-quality ETFs.”
read more: BlackRock's Bitcoin ETF outperforms Bitcoin
Bitwise’s Spot Bitcoin ETF has seen inflows approaching $400 million since the start of Friday, while Ark and 21Shares products have seen more than $300 million in inflows.
The Invesco Galaxy Bitcoin ETF (BTCO) had approximately $190 million in assets in its first five days on the market.
Net inflows into the fund from crypto expert Valkyrie have so far exceeded net inflows from products from traditional financial giant Franklin Templeton. Traffic into VanEck and WisdomTree is at an all-time low.
Leaks, lack of traction, pending spot exposure…oh my god
About $2.2 billion has been out of Grayscale Investments' Bitcoin Trust ETF (GBTC) so far, according to data from Bloomberg Intelligence.
GBTC was an investment vehicle founded in 2013 before converting to an ETF. After conversion, assets were approximately $28 billion.
But levels have declined amid outflows, with various industry watchers predicting that GBTC's 1.5% fee is well above other ETFs with fees ranging from 0.19% to 0.39%. This is the scenario.
read more: Why Grayscale Bitcoin ETF’s scheduled fees are much higher than others
John Hoffman, Grayscale's managing director of sales and distribution, called GBTC the “primary risk transfer vehicle” that has dominated spot Bitcoin ETF trading volume. After five days of trading, the fund's trading volume was approximately $7.7 billion. This accounted for more than half of the trading volume of such ETFs.
“Broadly speaking, large capital markets ETFs are used in a variety of investment strategies, and we expect GBTC's diverse shareholder base to continue to develop strategies that influence inflows and outflows,” he told Blockworks. I'm doing it,” he said.
While some companies see large amounts of inflows and outflows, WisdomTree is an unusual case where there are very few outflows.
The fund manager, which manages about $100 billion in assets, last year launched a “blockchain-native” app that allows consumers to buy and sell Bitcoin and Ether.
However, the company's position in this space has not yet attracted investor funds to Bitcoin ETFs. With volume of $15 million and flows of $2.6 million through Thursday, it ranks last among 10 U.S. spot Bitcoin ETFs, according to Bloomberg Intelligence.
Jarrett Lillian, WisdomTree's president and chief operating officer, noted that some issuers are guaranteeing initial flows from “their own discretionary allocations or their own captive distributions.”
“Going forward, we hope to capture a larger proportion of industry inflows into Bitcoin ETFs through BTCW,” Lilien added.
“The asset management channel, which is the primary distribution channel for U.S. ETFs, is just beginning to allocate to Bitcoin, and we look forward to working with our partners over time and educating them about our products and asset class. Masu.”
Brazil-based HashDex has not yet reached the starting gate when it comes to offering spot exposure to Bitcoin ETFs.
read more: Hashdex Bitcoin Fund Doesn’t Offer Spot Exposure Yet
In August, the asset management company applied to convert its Bitcoin Futures ETF (DEFI) into a new fund that directly holds Bitcoin, the HashDex Bitcoin ETF.
The U.S. Securities and Exchange Commission appears to still be considering the proposed investment strategy changes.
A Hashdex spokesperson declined further comment.
Updated on January 19, 2024 at 4:32 PM ET: Added quote from WisdomTree President Jarrett Lilien.
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