Based on the results of trading for four days from January 11 to January 17, the following conclusions can be drawn about spot bitcoin ETFs:
The start-up of ETF trading aroused great excitement and interest among investors. This is shown by record trading volumes for crypto products during the first few days.
However, the dynamics of these volumes show that the initial excitement has been begun to fade. Against the backdrop of weakening bitcoin, a further decline in volumes can be expected.
Most of the inflows relate to the three largest ETFs: Grayscale, BlackRock and Fidelity. This points to their leadership.
A significant outflow of investments from Grayscale is due to higher transaction fees compared to other ETFs, as well as the ability to redeem previously purchased shares. This calls into question the competitiveness of this ETF.
Overall, the launch of spot bitcoin ETFs is a positive development for the entire cryptocurrency market as it draws new investors into the industry and helps boost liquidity. However, a steady inflow will take time.
Here are some relevant data:
1. The total volume of 11 spot BTC ETFs in the first four days of trading was $11.8 bln.
2. The top performers in terms of trading volume are Grayscale, BlackRock and Fidelity ETFs, which account for more than 90% of the total volume.
3. As of January 19, net inflows into nine ETFs (excluding Grayscale) totaled $1.2 mln.
4. The largest inflows were seen at BlackRock ($1.081 bln and Fidelity ($882 mln) ETFs.
5. A total of $1.6 bln (approximately 39,200 BTC) was withdrawn from the Grayscale’s ETF.
Thus, over four days, the cumulative net inflow of funds into these ETFs was about $2.8 bln ($1.2 bln in inflows to nine ETFs minus $1.6 bln of outflows from Grayscale).