US Spot Bitcoin ETFs Experience $418M Net Inflows, Led by Fidelity and BlackRock

US spot Bitcoin exchange-traded funds (ETFs) have rebounded with a net inflow of $418 million, reversing a five-day trend of outflows. Fidelity's Bitcoin ETF saw its largest daily inflow since March 13, attracting $279.1 million on March 26. This surge in inflows comes as the investment giant added an additional 4,000 BTC to its fund, marking the second consecutive day of inflows exceeding $260 million.

BlackRock and Other Funds Join In:

BlackRock's Bitcoin ETF also experienced strong inflows, attracting $162.2 million. While this is a significant amount, it is lower than the inflows seen earlier this month, which averaged over $300 million per day. Additionally, Ark 21Shares Bitcoin ETF had its best day since March 12, with $73.6 million in inflows.

Competitors' Performance:

Invesco Galaxy, Franklin Templeton, and Valkyrie also saw healthy inflows, with each receiving more than $26 million across their respective funds. However, Grayscale's Bitcoin Trust (GBTC) continued to experience outflows, with a daily outflow of $212 million. Despite this, GBTC's outflows were not enough to outweigh the net inflows of its competitors.

Grayscale's Transformation:

Since converting from a trust to an ETF on Jan. 11, Grayscale has shed 277,393 BTC, equivalent to roughly $19.5 billion at current prices. This transformation reflects a changing landscape in the crypto investment space.

Broader Impact:

Bloomberg senior ETF analyst Eric Balchunas highlighted the presence of Bitcoin ETFs in a chart of the largest 30 asset funds in their first 50 days of trading. He noted that four Bitcoin ETFs made the list, with BlackRock's IBIT and Fidelity's FBTC standing out. Even Bitwise Bitcoin ETF (BITB), currently the 18th largest Bitcoin ETF by assets under management, surpassed the world's largest SPDR Gold Shares (GLD) fund.

Here's a look at Top 30 ranked by assets in first 50 days on market. Went global for this so this is out of 11,338 funds. Four BTC ETFs made the list. $IBIT and $FBTC in league of their own. $BITB > $GLD! pic.twitter.com/V5ENc3boNv
— Eric Balchunas (@EricBalchunas) March 26, 2024

Conclusion:

The recent surge in net inflows into US spot Bitcoin ETFs, led by Fidelity and BlackRock, indicates renewed investor interest in cryptocurrency. This trend underscores the growing acceptance and adoption of Bitcoin and other digital assets in traditional investment portfolios.