Bitcoin ETF Flows Dip Into The Red For The First Time Since Launch

Updated: 26 January 2024

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The recently launched spot Bitcoin ETF (exchange-traded funds) products in the US are seeing combined negative flows for the first time since they started trading on Jan.11 as inflows for BlackRock and Fidelity are overshadowed by outflows from Grayscale’s GBTC.

Data collected by Bloomberg Intelligence analyst James Seyffart shows that the 10 spot bitcoin ETFs, as well as GBTC, saw a net outflow of $158 million on Jan. 24.

The total number of Bitcoin held by all of the spot ETFs as of Jan. 24 is approximately 649,000, according to figures compiled by CoinDesk. This comes a week after the total stood at over 660,000 BTC, marking a decline of roughly 11,000 tokens.

Bitcoin ETF Inflows Led By IBIT, FBTC

Among the 10 funds, BlackRock’s IBIT and Fidelity’s FBTC currently lead the way with each holding more than 40,000 Bitcoin as of Jan. 24. As a result, both funds hold in excess of $1.6 billion in assets under management.

GBTC was the only fund that saw actual negative outflows over the last week. During this period, its total Bitcoin holding dropped from 592,098 to 523,516. The decline was enough to flip the net flows of the 10 spot ETFs into negative territory. This was also made easier by the drop in IBIT’s and FBTC’s inflows over the past few days.

BlackRock’s IBIT recorded 1,663 BTC in inflows on Jan. 24, which was its weakest daily addition since it started trading. It was also a drop from the 8,705 BTC inflows the fund achieved on Jan. 17.

Net Flows Remain In The Green Despite Decreased Activity

The good news: GBTC outflows trending down. The bad news: so are the Nine's. That leaves us with TOTAL ROLLING NET FLOWS of +$824m. Also $ARKB and $BITB crossing half a billion is remarkable. For any normal launch in first month that's considered blockbuster-level success. https://t.co/jPtlxhMtwP

— Eric Balchunas (@EricBalchunas) January 25, 2024

Despite the decline throughout the last week, net inflows for the 10 spot Bitcoin ETFs which went live on Jan. 11 are still substantial. Seyffart’s Bloomberg colleague, Eric Balchunas. revealed that the total dollar inflows amounts to $824 million since launch, or roughly 20,000 Bitcoin.