Spot Bitcoin ETFs See Significant Net Inflows Despite Recent Outflows

Spot Bitcoin ETFs Bounce Back with $36 Million Net Inflow Despite GBTC Losses

Spot Bitcoin ETFs – Despite earlier outflows, spot Bitcoin exchange-traded funds (ETFs) have continued to capture investor interest. Data from SoSoValue reveals that on August 16, the total weekly net inflow for spot Bitcoin ETFs surged to $32.58 million. This contrasts with the net outflows observed in the preceding weeks, which saw $80.69 million on August 2 and $169 million on August 9.

Bitcoin Market Shows Mixed Signals

The market for Bitcoin ETFs is experiencing mixed signals. On August 16, while the total net inflow for spot Bitcoin ETFs reached $36 million, Grayscale Bitcoin Trust (GBTC) experienced significant outflows of $72.9 million. GBTC has faced a persistent loss of funds, with historical net outflows amounting to $19.6 billion. In contrast, the Grayscale Bitcoin Mini Trust ETF reported no net outflows on August 16 and maintained its total net inflows of $288 million.

The decline in GBTC’s performance is linked to NYSE Arca’s decision to retract a proposed rule change that would have allowed the trading of GBTC and similar cryptocurrency ETFs.

Fidelity and BlackRock Lead ETF Inflows

Among the spot Bitcoin ETFs, Fidelity’s Bitcoin Fund ETF led with the highest net inflow on August 16, totaling $61.3 million. This increases its historical net inflows to $9.8 billion. BlackRock’s iShares Bitcoin Trust ETF also saw a substantial net inflow of $20.38 million, bringing its total historical net inflows to $20.38 billion.

Growing Acceptance of Spot Bitcoin ETFs

The continued positive inflows into spot Bitcoin ETFs come at a time when their total net asset value stands at $54.35 billion. The ETF net asset ratio, representing the market value of ETFs as a percentage of the total Bitcoin market value, is currently at 4.65%. Cumulative historical net inflows have reached $17.37 billion, highlighting the increasing acceptance and integration of spot Bitcoin ETFs within the investment landscape.

Additionally, a filing with the US Securities and Exchange Commission on August 14 indicates that Morgan Stanley holds $188 million in shares of a spot Bitcoin ETF. This reflects the growing institutional interest and confidence in Bitcoin ETFs as part of a diversified investment strategy.