Bitcoin ETFs Experience Second Day of Over $900 Million Inflows
In a significant development in the world of cryptocurrency, United States-based spot Bitcoin exchange-traded funds (ETFs) recorded nearly $1.9 billion in total net inflows on January 3 and January 6. This marked a reversal of a streak of low demand in the latter half of December.
A New High for US-Based Spot Bitcoin ETFs
The surge in investor interest in spot Bitcoin ETFs is a significant milestone, especially considering that these products have been available to investors for nearly 12 months. The total net inflows since their launch amount to $36.9 billion, with BlackRock’s iShares Bitcoin ETF leading the pack with $37.4 billion.
Top Performing Spot Bitcoin ETFs
On January 6, the Fidelity Wise Origin Bitcoin Fund was the clear winner, attracting a massive $370.2 million in investor money. This was closely followed by BlackRock’s iShares Bitcoin ETF and the ARK 21Shares Bitcoin ETF, which saw inflows of $209 million and $153 million, respectively.
Here is a breakdown of the top performing spot Bitcoin ETFs on January 6:
- Fidelity Wise Origin Bitcoin Fund: $370.2 million
- BlackRock’s iShares Bitcoin ETF: $209 million
- ARK 21Shares Bitcoin ETF: $153 million
Other notable mentions include Bitwise Bitcoin ETF and Grayscale’s two spot Bitcoin ETFs, tickered GBTC and BTC, which saw over $70 million in inflows on January 6. The VanEck Bitcoin ETF and Franklin Bitcoin ETF also racked up $17.3 million and $8.9 million, respectively.
Spot Bitcoin ETFs with Zero Inflows
While the majority of spot Bitcoin ETFs saw significant inflows on January 6, there were a few that recorded zero inflows. According to data from Farside Investors, Invesco, Valkyrie, and WisdomTree each issued spot Bitcoin ETFs that saw no net inflows on the day.
Daily Flows into US Spot Bitcoin ETFs
A closer look at the daily flows into US spot Bitcoin ETFs between December 19 and January 6 reveals a rollercoaster ride of investor sentiment. While there were days when net outflows reached as high as $1.9 billion, the two strong days on January 3 and January 6 almost canceled out these losses.
Accumulated Net Inflows Since Launch
With the latest inflows, the spot Bitcoin ETFs have now accumulated a staggering $36.9 billion in net inflows since their launch nearly 12 months ago. This is a significant milestone for the industry and a testament to the growing interest in cryptocurrency investments.
BlackRock’s iShares Bitcoin ETF Leads the Pack
As mentioned earlier, BlackRock’s iShares Bitcoin ETF leads all spot Bitcoin ETFs with $37.4 billion in net inflows since its launch. The Fidelity Wise Origin Bitcoin Fund comes in second, with a total of $12.4 billion in net inflows.
Grayscale’s GBTC Lags Behind
In comparison, Grayscale’s converted GBTC has seen significant outflows, totaling $21.4 billion. This is a stark contrast to the other spot Bitcoin ETFs, which have seen record-breaking net inflows.
Retail Investors Drive Demand for Spot Bitcoin ETFs
An October 25 report from cryptocurrency exchange Binance found that nearly 80% of demand for the spot Bitcoin ETFs came from retail investors, not institutions. This is a significant finding, as it suggests that individual investors are driving the growth in this market.
Expect More Institutional Involvement in 2025
Industry analysts such as Bitwise’s chief investment officer Matt Hougan expect more institutional involvement in 2025, when more clearinghouses for spot Bitcoin ETF trading come online. This is one of the catalysts behind Bitwise’s bullish $200,000 Bitcoin price estimate for 2025, while VanEck expects Bitcoin to top $180,000.
Conclusion
The record-breaking net inflows into US-based spot Bitcoin ETFs on January 3 and January 6 are a significant development in the world of cryptocurrency. With over $36.9 billion in total net inflows since their launch nearly 12 months ago, these products have proven to be a hit with investors. As we look ahead to 2025, it will be interesting to see how institutional involvement drives demand for spot Bitcoin ETFs and whether they continue to attract record-breaking net inflows.
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