Four Months of Bitcoin ETFs in the USA

Four Months of Bitcoin ETFs in the USA

Net Inflows Slow Down, Yet BTC Index Funds Gain $11.7 Billion Since SEC Approval

Over the past week, $116.8 million was invested in the ten BTC index funds, according to new data from Farside Investors. Despite continued growth, the pace of net inflows has significantly slowed since mid-April.

A look back at the first four months of Bitcoin ETF trading since the SEC approval on 11th January reveals nearly $12 billion in net inflows into the ten spot BTC ETFs. Notably, these substantial inflows occurred despite the Grayscale Bitcoin Trust experiencing net outflows of $17.6 billion, more than halving its BTC holdings.

The biggest beneficiaries have been major US asset managers BlackRock and Fidelity. Their respective Bitcoin ETFs saw net inflows of $15.5 billion and $8.2 billion, making these products some of the most successful ETF launches ever.

Fidelity’s FBTC ETF recorded net inflows for the first 63 days until the streak ended on 12th April. By that time, the Bitcoin ETF had attracted around $8 billion in net assets, but only an additional $94 million in the 21 trading days that followed.

The iShares Bitcoin Trust from BlackRock enjoyed a 71-day surge, accumulating nearly $15.5 billion in net inflows. However, in the last 13 trading days, it saw a mere $24 million added.

Recently, it appeared that BlackRock was poised to overtake Grayscale as the market leader. However, the rate of net outflows from GBTC has also slowed, leaving it still in the top position with 291,000 BTC, according to Dune Analytics.

Overall, US Bitcoin ETFs hold 4.17% of the total circulating BTC supply. Despite the current moderate demand, a new ETF boom could be on the horizon. Discover what might drive this in our BTC-ECHO interview with Galaxy.

Zezi Ifore