The Spot Bitcoin Exchange Traded Fund (ETF) has recorded a total inflow of $1.55 billion since its introduction in US markets.
According to Crypto.com Research, the spot Bitcoin ETF products that started trading on January 11 garnered a total net inflow of US$1.06 billion in the first week of launch. Within this timeframe, they also collectively gained over 100,000 BTC (worth approximately US$4 billion, excluding GBTC) in AUM.
The spot Bitcoin ETF products have triggered a dynamic market trend that has been characterized by a mix of inflows and outflows, with Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity Investment’s FBTC taking center stage.
The Spot Bitcoin ETF Highlights
In the report, Crypto.com Research noted the key advantages of spot Bitcoin ETFs, which include a means to diversify assets and the cost efficiency it affords its investors, amongst others.
The advantage the product offers users quickly resonated with investors as a total of $1.55 billion in net inflows have been recorded thus far. Per the insights shared and as reported by The Crypto Basic, Grayscale has suffered the most in terms of outflows, while the BlackRock iShares Bitcoin Trust has seen the biggest inflow thus far.
— Crypto.com Research & Insights (@cryptocom_rni) February 5, 2024
An accompanying chart in the report, as shown below, further highlights the inflow and outflow trends. Since its inception, only Grayscale has recorded noticeable outflows as its previous GBTC investors rebalance their portfolios in pursuit of cheaper spot Bitcoin ETF alternatives.
Grayscale has kept its spot Bitcoin ETF fee at 1.5%, a range analysts have projected might work against the company as competition heats up in the market. Other competing issuers like Franklin Templeton have lowered their fees to look more attractive to investors.
Step-Up for Other Crypto ETFs
The emergence of spot Bitcoin ETFs undoubtedly changed the regulatory narrative in the US, suggesting more related products might be underway. At the moment, the United States Securities and Exchange Commission (SEC) is deliberating on whether to approve the spot Ethereum ETF applications from the likes of BlackRock and Fidelity.
Industry experts are divided on the prospects of bagging approval for spot Ethereum ETF as proponents believe the regulator will take a similarly favorable approach as the BTC equivalent. Others believe Ethereum has no clarity as a non-security and that the regulator might not be completely open to the idea at this time.
With a May 23 deadline to approve or deny the first sets of spot Ethereum ETF applications filed, the industry is on edge to see if the SEC will make history again.