A significant shift has occurred in the US spot Bitcoin exchange-traded funds (ETFs) sector. The latest data from K33 Research has revealed an accumulation of Bitcoin assets by the newly launched spot Bitcoin ETFs, excluding Grayscale’s Bitcoin Trust (GBTC).
Within 13 days of trading, these new spot ETFs have collectively racked up over 150,000 BTC in assets, showcasing their rapid growth and increasing market influence.
The net inflows for these new spot ETFs have been quite substantial, exceeding $1 billion yesterday alone, according to BitMEX Research.
This surge in inflows marks a notable shift in the market dynamics, as GBTC, once a dominant player, sees its market share in trading volume shrink to 36%, according to data from IntoTheBlock. This decline starkly contrasts its previous peak of 63.9% on January 17.
BlackRock’s IBIT Outshines Canadian Bitcoin ETFs
Among the new entrants which include BlackRock (IBIT), Fidelity (FBTC), Ark 21Shares (ARKB), Invesco (BTCO), Bitwise (BITB), Valkyrie (BRRR), Franklin Templeton (EZBC), WisdomTree (BTCW), and VanEck (HODL), BlackRock’s IBIT spot Bitcoin ETF has emerged as a formidable player, surpassing the combined assets under management (AUM) of all Canadian Bitcoin ETFs.
As of the latest data from K33 Research, IBIT holds 56,621 BTC, valued at approximately $2.5 billion, overtaking the AUM of prominent Canadian ETFs like CI Galaxy Bitcoin ETF and Purpose Bitcoin ETF, which sit at 55,016 BTC or $2.4 billion.
Fidelity’s US spot BTC ETF, FBTC, also follows closely, holding approximately 51,064 BTC as of the latest update.
The substantial inflows into these spot ETFs, especially BlackRock’s IBIT and Fidelity’s FBTC, which have recorded inflows of $208.2 million and $198.4 million, respectively, underscore the growing investor interest and confidence in these financial products.
January 30
150,000 BTC is held by the new ETFs – in less than three weeks!
Significant slowdown of GBTC outflows led yesterday to see the strongest daily U.S. spot flows since January 17.
BlackRock needed 13 trading days for its AUM to surpass all Canadian BTC ETFs combined. pic.twitter.com/C7Tb9fNsd5
— Vetle Lunde (@VetleLunde) January 30, 2024
Grayscale’s Position In The Market
Grayscale, a financial behemoth in the BTC space, despite its market share plunge in the spot ETF space, continues to hold a significant amount of BTC, with its holdings amounting to 496,573 BTC as of January 29.
As of January 29, 2024, the number of Bitcoins held by Grayscale was 496,573.8166. Additionally, GBTC’s AUM is approximately $21.431 billion. After the spot ETF passed, Grayscale users sold a total of 120,500 BTC, which is equivalent to approximately $5.508 billion.…
— Wu Blockchain (@WuBlockchain) January 30, 2024
However, the company’s recent activities indicate a slowdown in its sell-offs, following a considerable total deposit of $4.91 billion BTC to Coinbase.
According to BitMEX research in an X post, GBTC had seen an outflow of $192 million on January 29, significantly lower than its usual outflow in the past week which ranged above $300 million.
Featured image from Unsplash, Chart from TradingView