According to recent data, the group of newly launched spot bitcoin exchange-traded funds (ETFs) are experiencing combined negative flows for the first time since their launch on January 11

This is evident from the data collected by Bloomberg Intelligence analyst James Seyffart, which shows a net outflow of $158 million on Wednesday.

The 10 spot bitcoin ETFs (GBTC included) have seen a net outflow of $158 million on Wednesday, with day-to-day flows fluctuating. Despite the slowdown in inflows, the total bitcoin held by all the spot ETFs (GBTC included) as of January 24 is around 649,000, which is a decline of approximately 11,000 tokens from the previous week.

Of the 10 ETFs, BlackRock’s IBIT and Fidelity’s FBTC are leading the way, with each holding more than 40,000 bitcoin as of January 24. These funds are also closing in on $2 billion in assets under management. However, inflows for both funds have slowed over the past few days.


Grayscale’s GBTC is the only fund that saw actual negative flows over the week, with its total bitcoin in trust falling to 523,516 from 592,098. This decline in flows is a negative trend for the first time since the launch of these ETFs.

Seyffart's Bloomberg colleague, Eric Balchunas, calculated total dollar inflows of $824 million since launch, which translates to a net bitcoin addition of around 17,000-20,000 tokens.


The combined negative flows of the newly launched spot bitcoin ETFs are a cause for concern.

Despite the leading performance of BlackRock’s IBIT and Fidelity’s FBTC, the overall trend is negative. It will be interesting to see how these funds perform in the coming days and weeks.

References:

Braun, H. (2024, January 25). Bitcoin ETF Flows Show Negative Trend For First Time Since Launch. Retrieved from https://www.coindesk.com/markets/2024/01/25/bitcoin-etf-flows-show-negative-trend-for-first-time-since-launch/

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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