Spot Bitcoin ETFs Gain Aggregate Inflow of $88 Million Over the Past 8 Days

Spot Bitcoin exchange-traded funds (ETFs) have seen positive inflows, particularly over the past eight of ten trading days. This reflects robust investor confidence in the products despite Bitcoin’s sideways trend in the past few days. 

On August 20, the total inflows for these offerings reached an impressive $88 million, which marks its highest point over the last two weeks. 

Positive Flows of Bitcoin ETFs

According to information from Farside Investors, 80% of Bitcoin trading days over the past two weeks have been positive, with outflows only on August 9 and 14.

BlackRock’s iShares Bitcoin Trust (IBIT) had the highest inflow, with a substantial $55.4 million on Tuesday, August 20. Following this notable inflow, IBIT’s total net inflow since its launch in January now amounts to $20.5 billion.

After its outflow on May 1, IBIT has not experienced a negative net flow day since its introduction in January. The investor confidence level in this product has allowed it to outpace Grayscale in assets under management (AUM).

Meanwhile, Ark 21Shares Bitcoin ETF (ARKB) comes second, securing an inflow of $51.9 million on August 20. Bitwise’s Bitcoin ETF (BITB) recorded a lower yet huge outflow of $6.5 million on the same day.

However, not all Bitcoin-based ETFs are benefiting from the flows. On Tuesday, Grayscale Bitcoin Trust (GBTC) incurred a net outflow of $12.8 million.

This decline sustains the diminishing investor interest in this fund since its conversion to spot BTC ETF seven months ago. Within this period, approximately $19.6 billion in AUM has left GBTC. 

Possible Factors Affecting ETFs’ Performances

The difference in performance among these funds could be attributed to various factors. Some key ones include historical performance, fee structures, and investor sentiment toward the management of each fund.

For instance, Grayscale’s major, GBTC, fund recorded a sharp decline in AUM, while its mini trust fund has attracted significant inflows since its launch on July 31. Grayscale’s Bitcoin Mini Trust has managed to attract $288 million in inflows since its launch. This suggests that investors are more mindful about cost when choosing.

Besides performance, large hedge funds have been participating more actively in Bitcoin funds. Sam Baker, a researcher at River, noted this in a post, stating that 60% of the largest hedge funds in the US have exposure to Bitcoin spot ETFs.

60% of the largest U.S. hedge funds hold Bitcoin ETFs

Not a single one sold over the second quarter, and most are still stacking

Here’s how institutional bitcoin adoption is still ramping up👇 pic.twitter.com/sOpzE5XKDj

— Sam Baker (@macromule) August 19, 2024

Their participation in the funds paves the way for Bitcoin to become globally acceptable within traditional finance.

Meanwhile, the spot Ether ETFs have shown a lackluster performance as more funds recorded outflows in the last five trading days. Specifically, on August 20, nine new Ether ETFs saw a net outflow of $6.5 million.

BlackRocks Ether ETF (ETHA) recorded $26.8 million in net inflows, while Grayscale’s ETHE saw net outflows of $37 million.