Fidelity's ETF inflow exceeds Grayscale's outflow

On the 12th day of trading, GBTC's outflow was lower than the Fidelity ETF's deposit, leading to a sharp decrease in redemption pressure from Grayscale.

Fidelity's ETF inflow exceeds Grayscale's outflow

Although the whole community happily welcomed the fundsETF Bitcoin spotlaunched, however since the official opening of trading, the market has sufferedconversion pressure from Grayscale's GBTC, causing the price of Bitcoin to plummet.

In recent days, the community has been "holding its breath" to watchcash outflowup to hundreds of millions of USD per day from Grayscale. Meanwhile, the remaining 10 ETFs, despite having positive cash inflows, are still not enough to offset GBTC's negative withdrawals.

Many experts reassured that this is just a normal phenomenon when investors holding Grayscale's GBTC are looking to divest from this fund, partly to take profits after a long holding period since 2021. 2022, in part to avoid Grayscale's 1.5% annual management fee by switching to other ETFs.

When investors have exhausted their need to divest capital and the remaining ETFs have increased cash inflows, this selling pressure will no longer have an impact.

Finally, on the 12th trading day of spot ETFs, the market recorded positive cash flow after many days of waiting.

According to January 29 data from BitMEX Research, Fidelity's FBTC recorded a capital inflow of $208 million , exceeding Grayscale's outflow of $192 million for the first time .

This positive signal shows that GBTC investors' need to divest capital has gradually decreased, giving way to steadily increasing demand from investors wanting to participate in the market. 

BTC price reacted positively when it was no longer "threatened" by conversion pressure, increasing slightly to around 43,400 USD.

4H chart of the BTC/USDT pair on Binance at 12:30 PM on January 30, 2024

On the other hand, ETFs with less volume are looking to increase their competitiveness in the eyes of investors. Invesco and Galaxy Asset Management will cut fees for their common fund BTCO from 0.39% to 0.25% - a fee that is on par with the average.

This move hopes to help attract more investors to BTCO when the value of assets under management of this fund is only about 208 million USD. Meanwhile, the leading competitor is BlackRock's IBITwith AUM reaching 2 billion USD.