Bitcoin ETF

Grayscale Bitcoin Trust

James

Fidelity’s spot Bitcoin&nbsp;exchange-traded fund (ETF) reportedly pulled in $208 million in daily inflows on Jan. 29, outstripping outflows from Grayscale Bitcoin Trust (GBTC) for the first time since its launch day.
<a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener noreferrer nofollow">According</a> to provisional data from Farside Investors, Fidelity’s FBTC raked in $208 million in inflows on Monday, compared with the $192 million in outflows from GBTC — the lowest daily outflows outside of its re-launch, <a href="https://twitter.com/BitMEXResearch/status/1752113539429368293" target="_blank" rel="noopener noreferrer nofollow">according</a> to data from BitMEX Research.&nbsp;
The latest GBTC outflows mark a nearly 25% drop from $255 million on Jan. 26 and a 70% drop from the fund’s peak daily outflows of $641 million on Jan. 22.
It’s also the second-lowest outflow day for Grayscale’s fund, besides the $95 million that left the fund on Jan. 11 — the day it was converted to a spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) ETF.
Crypto traders are eagerly watching for signs of slowed GBTC outflows caused by the fund’s investors taking the chance to cash out of their <a href="https://cointelegraph.com/news/bitcoin-spot-etfs-see-three-times-trading-volume-all-500-etfs-launched-2023" rel="noopener noreferrer nofollow">once-underwater positions</a>.
JPMorgan analysts noted on Jan. 25 that GBTC outflows have caused <a href="https://cointelegraph.com/news/gbtc-sell-off-to-stem-jpmorgan-bitcoin-etfs-record-net-outflows" rel="noopener noreferrer nofollow">downward price pressure</a> on Bitcoin but added that “should be largely behind us.”
Meanwhile, Jan. 29 figures show the nine new U.S. spot Bitcoin ETFs hit a combined $994.1 million in volume, close to doubling that of GBTC, which saw $570 million in volume, according to data shared to X by Bloomberg ETF analyst James Seyffart.
<blockquote class="twitter-tweet">
 And <a href="https://twitter.com/Grayscale?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Grayscale</a>'s <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$GBTC</a> maintains its liquidity crown -- trading $570 million and ~$110 million more than second place <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$IBIT</a> today <a href="https://t.co/WIAWKwDnqY" rel="noopener noreferrer nofollow">https://t.co/WIAWKwDnqY</a> <a href="https://t.co/ma0CE5szLa" rel="noopener noreferrer nofollow">pic.twitter.com/ma0CE5szLa</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1752081949470986329?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 29, 2024</a>
</blockquote>
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC saw the largest volume share behind the GBTC, pulling in respective daily volumes of $460.9 million and $315.4 million — 78% of the combined volume posted by the nine new ETFs.
The crowded market for spot Bitcoin ETFs has even reportedly seen fund issuers cut fees to attract investors in the U.S. and abroad.
Related: <a href="https://cointelegraph.com/news/gbtc-exodus-prompts-outflows-canada-europe-coinshares" rel="noopener noreferrer nofollow">$5B flight from GBTC likely led to outflows in other regions: CoinShares</a>
Invesco and Galaxy Asset Management were the <a href="https://cointelegraph.com/news/spot-bitcoin-etf-fee-war-begins-issuers-amend-s-1-filings-with-lower-sponsor-fees" rel="noopener noreferrer nofollow">latest to drop fees</a> on their joint ETF — Invesco Galaxy Bitcoin ETF (BTCO) — <a href="https://www.prnewswire.com/news-releases/invesco-and-galaxy-drop-the-sponsor-fee-on-invesco-galaxy-bitcoin-etf-btco-302047120.html" target="_blank" rel="noopener noreferrer nofollow">saying</a> on Jan. 29 that its eventual expense ratio will be 0.25%, down from 0.39%.
The fee drop brings it down to the same level as BlackRock, Fidelity, Valkyrie and VanEck. BTCO has zero fees for the first six months or until it hits $5 billion in assets, after which the new lower fee will go into effect.
<blockquote class="twitter-tweet">
 This is what the fee table looks like now: <a href="https://t.co/LPvd6YwGWJ" rel="noopener noreferrer nofollow">pic.twitter.com/LPvd6YwGWJ</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1752087109484097631?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 29, 2024</a>
</blockquote>
The stateside fee war may have also affected Europe’s ETFs, with speculation that <a href="https://cointelegraph.com/news/crypto-products-record-weekly-volume-spot-bitcoin-etfs-coinshares" rel="noopener noreferrer nofollow">traders are fleeing from Europe-based products</a> to the U.S., according to research from CoinShares.
Last week, on Jan. 23, <a href="https://cointelegraph.com/news/invesco-and-wisdomtree-cut-fees-on-european-etps-as-price-war-reaches-europe" rel="noopener noreferrer nofollow">Invesco also slashed fees</a><a href="https://cointelegraph.com/news/invesco-and-wisdomtree-cut-fees-on-european-etps-as-price-war-reaches-europe" rel="noopener noreferrer nofollow"></a> on its Europe-based Bitcoin ETF from 0.99% to 0.39%. It was joined by WisdomTree, which cut fees from 0.95% to 0.35%.
CoinShares <a href="https://coinshares.com/news/fee-reduction-coinshares-physical-bitcoin" target="_blank" rel="noopener noreferrer nofollow">followed</a> on Jan. 25, cutting fees on its flagship Bitcoin ETF from 0.98% to 0.35%.
Asia Express: <a href="https://cointelegraph.com/magazine/okx-token-flash-crash-crypto-exec-mr-bang-on-the-run-asia-express/" rel="noopener noreferrer nofollow">OKX token’s $6.5B flash crash, crypto exec ‘Mr Bang’ on the run</a>

Fidelity Bitcoin ETF rakes in reported $208M, offsetting Grayscale outflows alone

Cointelegraph

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