Summary
TLDR: Grayscale’s Bitcoin ETF saw near-record outflows of $598 million, while BlackRock’s fund had strong inflows. Overall, net inflows for all US spot bitcoin ETFs dropped from a record $673 million to $92 million. Interest in bitcoin ETFs has helped drive up the price of bitcoin, with some speculating that outflows from Grayscale could be due to a bankrupt lender offloading shares. Fees and performance are top factors for ETF investors, with Grayscale’s high fees standing out.
Key Points
1. Near-record outflows from Grayscale’s spot bitcoin ETF offset another monster day for BlackRock’s fund, as the category’s net inflow total took a hit Thursday.
2. Inflows into BlackRock’s iShares Bitcoin Trust remained strong, breaking $600 million for a second straight day to offset the GBTC outflows. Competing offerings did not contribute much net inflows, with second-best Fidelity seeing $45 million from its bitcoin ETF, and others seeing little or none.
3. The 10-fund US bitcoin ETF category has absorbed GBTC’s roughly $8.4 billion of outflows in the past seven weeks — totaling net inflows of about $7.5 billion.