Unveiling the dynamic landscape of cryptocurrency investments, this piece dives into the first-day fund flows of the newly launched physical Bitcoin ETF in the U.S.
Learn about the substantial initial net inflows, ETF performance, and investor responses to this groundbreaking financial product.
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Initial Net Inflows of Physical Bitcoin ETF on the First Day Reach Approximately $655 Million
The net inflows for the newly launched physical Bitcoin ETF in the United States on its first day of trading were approximately $655 million, as recently disclosed.
James Seyffart, a Bloomberg ETF analyst, reported on January 13, 2024, that he had updated the data summarizing the fund inflows for various physical Bitcoin ETFs, revealing that the total net inflow on the first day was around $655 million.
The ETF with the largest inflow was Bitwise's BITB (approximately $237.9 million), followed by Fidelity's FBTC (about $227 million). The inflow for BlackRock's IBIT was reported to be around $117 billion.
In contrast, Grayscale's GBTC, which was converted into a physical Bitcoin ETF, reported an outflow of approximately $95 million.
High Fees as the Cause of Outflows from GBTC?
The outflow of funds from GBTC is believed to be due to the "high fee of 1.5% set by GBTC," and BitMEX Research commented in a post on January 13, 2024, that "it is certain that significant outflows from GBTC will occur in the coming days, weeks, and months."
The fees for other physical Bitcoin ETFs are set between 0.2% and 0.9%, with some ETFs applying a temporary discount to reduce the fee to 0%. This makes it likely that existing GBTC holders are moving their funds to other ETF products with lower fees.
※ The net flow report by BitMEX Research does not include the inflow for Valkyrie.
Furthermore, regarding the trading volume of physical Bitcoin ETFs, it was reported that "the trading volume on the first day was about $4.5 billion" and "on the second day, it was about $3 billion."
The cumulative trading volume over the two days is said to be approximately $7.6 billion.
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The Importance and Future of Physical Bitcoin ETFs: Insights from Analyst Michaël van de Poppe
Discover the insights from analyst Michaël van de Poppe on the importance of physical Bitcoin ETFs, their impact on institutional investors, and future market predictions in this comprehensive article.
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