Grayscale sees $2.2 billion outflows amid shift towards bitcoin ETFs

The fresh spot bitcoin ETF market in the United States has seen a total net inflow of nearly $1.2 billion in the first five days of trading. According to BitMEX Research data, both Fidelity and BlackRock have joined the “$1 billion-plus inflows club,” reflecting the strong investor interest in these products.

Grayscale Bitcoin Trust (GBTC)

Bitwise ranks third in inflows, having attracted $395.5 million, followed by Ark Invest/21Shares and Invesco with $320.9 million and $194.9 million, respectively. Overall, ten out of the eleven ETFs have seen combined inflows totaling almost $3.4 billion. However, Grayscale suffered massive outflows, amounting to $2.2 billion, with the remaining funds witnessing inflows under $100 million.

Despite the overall positive inflow into ten of the eleven ETF products, the spot bitcoin ETFs faced their largest net outflow of $131.6 million yesterday. This outflow was primarily driven by outflows from Grayscale’s converted fund, which could not be offset by the inflows in other funds.

Fidelity (FBTC) and BlackRock (IBIT) led the inflows for yesterday, attracting $177.9 million and $145.6 million, respectively. Invesco (BTCO) experienced the third-largest inflows at $59 million, while Ark Invest/21Shares (ARKB) and Bitwise (BITB) followed with inflows of $41.8 million and $20.1 million.

The spot bitcoin ETF market fluctuated between net inflows and outflows over the week, with a return to net inflows of $474 million on Wednesday, contrasting with net outflows on Tuesday and the largest outflow on the fifth day.

Grayscale, BlackRock, and Fidelity continue to lead in terms of trading volume and assets under management (AUM). Combined, these ETFs contributed to a huge trading volume, nearly reaching $14 billion cumulatively. Grayscale’s GBTC alone accounted for nearly $1.1 billion of Thursday’s trading volume, while BlackRock’s IBIT and Fidelity’s FBTC generated $416 million and $367 million in volume, respectively.

The approval of nearly a dozen ETFs tracking the world’s largest cryptocurrency by the U.S. Securities and Exchange Commission (SEC) last week marked a major shift after years of regulatory hesitations.