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Bitcoin spot ETFs in the United States attracted an additional $477 million in net inflows on Thursday, continuing their record expansion despite a resurgence of outflows from the Grayscale Bitcoin Trust (GBTC).
Data gathered from BitMEX Research indicates that Bitcoin ETFs have received over $400 million in inflows for five of the past seven trading days. Since their inception, they have accumulated more than $4.5 billion in BTC – or $11.3 billion when excluding outflows from Grayscale.
Bitcoin ETF Flow – 15th Feb
All data out. Very strong day. +$477m of net ETF flow pic.twitter.com/LxvDPeakzW
— BitMEX Research (@BitMEXResearch) February 16, 2024
Consistent Inflows for Bitcoin ETFs
The Bitwise Bitcoin ETF (BITB), the fourth largest among the nine recently launched ETFs, experienced its most successful day aside from its launch day, attracting $120.2 million in investments.
“Grateful to investors entrusting Bitwise to steward their investment,” Bitwise CEO Hunter Horsley tweeted on Thursday. “Excited about 2024 for Bitcoin investors.”
In contrast to BlackRock and Bitwise, Grayscale has faced continuous losses since its conversion to a Bitcoin ETF on January 11.
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The firm’s relatively high fees have prompted investors to seek more affordable BTC investment alternatives. Furthermore, long-term investors have seized the chance to exit the fund since its share discount returned to parity following the conversion, including the FTX bankruptcy estate with its $900 million GBTC holdings.
The BTC Supply and Demand Imbalance
Earlier this week, another bankruptcy estate was authorized to liquidate its $1.3 billion in GBTC shares: Genesis – the trading desk that shares DCG as a parent company with Grayscale.
Some observers speculate that this approval has contributed to the recent increase in GBTC outflows, potentially stalling Bitcoin’s price momentum at $52,000. Outflows surged from $72 million on Wednesday to $132 million on Thursday, and then to $174 million on Thursday.
Considering the persistent demand for Bitcoin ETFs, some analysts – including Bitwise CIO Matt Hougan – have pointed out that Bitcoin is currently experiencing a significant “supply/demand imbalance” between the quantity of BTC produced since the ETFs became operational and the amount absorbed by ETFs each day.
Supply/demand mismatch. pic.twitter.com/XWalxQoV7v
— Matt Hougan (@Matt_Hougan) February 16, 2024
“With ETF demand… we’re just consuming the Available For Sale supply at $52k until there’s none remaining,” Onramp COO Jesse Myers wrote to X on Friday. “At that point… price must rise to the next level where there are willing sellers.”
The post Bitcoin ETFs Gobble Another $477 Million Despite Rising GBTC Sales appeared first on Cryptonews.
