Despite notable multi-billion dollar inflows into spot bitcoin (BTC) ETFs, the price of the digital currency remains sideways around $42,000, raising questions about the lack of positive impact on the market.
The bitcoin spot ETF that has obtained the best inflows in three days is that of the financial giant BlackRock (IBIT) , with $710 million, followed by Fidelity (FBTC) with $524 million, Bitwise (BITB) $305 million and Ark 21 Shares (ARKB) with $227 million.
Meanwhile, Invesco (BTCO) took in USD 77 million, Valkyrie (BRRR) USD 63 million, Franklin Templeton (EZBC) USD 50 million, VanEck (HODL) $25 million and WisdomTree (BTCW) $1 million.
However, both the Grayscale ETF (GBTC) and the ProShares ETF (BITO) have gone against this general inflow trend , recording outflows of $1,173 million and $194 million respectively. This can be seen in the following table shared by the exchange-traded fund analyst, Eric Balchunas.
The exits from GBTC and BITO while there are entries into the other ETFs reflect that a capital rotation is taking place, that is, there is not much new demand entering these instruments. Precisely, together, the products register receipts in three days of $588 million.
This lack of significant demand in ETFs means that the price of bitcoin does not rise and remains around $42,000. Such a panorama takes place after strong profit taking following the approval of the ETFs, which caused it to decline from $49,000.
Balchunas considers that Grayscale faces a complex situation and believes that its departures "will continue for a while." However, he clarified that the “good news” is that the gap between the price of the ETF and the value of BTC is reducing with its fall, since it had risen significantly when this instrument was a futures instrument before the authorization of spot funds. of the currency.
One reason GBTC would be seeing significant outflows is because it is the ETF that charges the most expensive fees. Also the issuers of these instruments have unleashed a "war" over which one offers the lowest commission.
In total, the 11 ETFs have traded almost $10 billion in 3 days, with Grayscale being the main protagonist. As a comparison, the BlackRock ETF alone is seeing more activity than the start of the 500 ETFs launched last year.
Aside from the number of outflows in recent days from Grayscale's spot bitcoin ETF, it continues to hold the lead in assets under management (AUM). This is a financial indicator that shows the volume of customer resources managed by a company.
GBTC has more than USD 26 billion in assets , well above the rest of the companies. In second place is IBIT with $500 million and FBTC with $400 million, as seen in the image above.
For exchange-traded fund analyst James Seyffart, the launch of all financial instruments is “very successful.” The only caveat he makes is that the Wisdomtree ETF has only $3.25 million in assets under management (AUM), being the only one in that situation, but he warns that this is just beginning and the race is long.
As investors continue to adjust to the availability of a variety of bitcoin ETFs, it remains to be seen how these capital movements will affect the future direction of the digital currency's price.
