Shift in Bitcoin ETF Flows Signals First Negative Trend Since Inception

Recent data reveals a noteworthy shift in the dynamics of spot Bitcoin exchange-traded funds (ETFs), marking the first collective outflow since their launch on January 11. While funds like BlackRock's IBIT and Fidelity's FBTC have attracted inflows, Grayscale's GBTC has experienced persistent outflows, resulting in a net outflow of $158 million across the 10 spot Bitcoin ETFs, including GBTC, on Wednesday.

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Analyzing the numbers, CoinDesk's compilation from issuers' websites indicates that the total Bitcoin held by all spot ETFs (including GBTC) as of January 24 stands at approximately 649,000, compared to over 660,000 a week earlier—a decline of around 11,000 tokens. Notably, GBTC witnessed the sole negative flows, with its total Bitcoin in trust decreasing from 592,098 to 523,516 over the week.

While the majority of the funds recorded positive trends, BlackRock's IBIT and Fidelity's FBTC emerged as leaders, each holding more than 40,000 Bitcoins as of January 24, up from 20,000-25,000 just a week ago. Both funds are also approaching the $2 billion mark in assets under management. However, it's worth noting that inflows for these leading funds have tapered off in recent days, with BlackRock adding only 1,663 tokens on January 24, its slowest daily addition since inception and a decrease from 8,705 on January 17.

Despite the recent slowdown, the net inflows since the launch of the 10 spot ETFs on January 11 remain substantial. Bloomberg's Eric Balchunas, in collaboration with analyst James Seyffart, calculated a total dollar inflow of $824 million, translating into a net addition of approximately 17,000-20,000 Bitcoin tokens.