Bitcoin Spot ETFs See $11.11M Net Inflow Despite GBTC Outflows

Bitcoin Spot ETFs Surge as GBTC Faces $25M Outflow Amid Market Shifts

Bitcoin Spot ETFs – On August 15, Bitcoin spot exchange-traded funds (ETFs) recorded a net inflow of $11.11 million, highlighting sustained investor interest even as the Grayscale Bitcoin Trust (GBTC) faced significant outflows. According to data from Sosovalue, while the overall spot Bitcoin ETF market experienced positive inflows, GBTC saw a substantial outflow of $25.03 million during the same period.

This decline for GBTC coincides with the New York Stock Exchange’s (NYSE) Arca electronic exchange withdrawing a proposed rule change that would have allowed the trading of GBTC and other cryptocurrency ETFs. The withdrawal of this rule change may have spurred investor uncertainty, contributing to the outflows from GBTC.

Bitcoin ETF Net Assets Reach $52 Billion Milestone

As reported by Sosovalue, the combined net inflows of Bitcoin spot ETFs have now reached $17.33 billion, pushing the total net asset value of these ETFs to $51.99 billion. This $52 billion milestone represents approximately 4.65% of the total Bitcoin market capitalization, underscoring the growing institutional and retail demand for regulated digital asset exposure through Bitcoin ETFs.

The rise in net assets highlights an increasing confidence among investors in Bitcoin spot ETFs as a reliable and compliant avenue for investing in digital assets.

Volatility and Market Sentiment: A Mixed Bag for Bitcoin ETFs

Despite the $11.11 million net inflow recorded on August 15, the broader picture over the past week presents a more complex scenario. Data from Sosovalue indicates that on August 14, Bitcoin spot ETFs saw outflows totaling $81.36 million, contrasting sharply with the positive inflows the following day.

This fluctuation suggests that investors are engaging in profit-taking and reallocating their portfolios in response to the volatile nature of the cryptocurrency market, where Bitcoin prices have seen both dips and surges.

Morgan Stanley Discloses $188 Million in Bitcoin ETF Holdings

In a significant disclosure on August 14, Morgan Stanley, a leading U.S. investment bank, reported holding $188 million in Bitcoin ETFs as of June 30. The filing with the United States Securities and Exchange Commission (SEC) revealed that the firm held over 5.5 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) ETFs in the second quarter of 2024.

This public disclosure came just before Morgan Stanley announced that it would enable its financial advisers to recommend Bitcoin ETFs to their clients, signaling a broader acceptance and integration of digital assets into traditional financial advisory services.