Bitcoin ETFs Gobble Another $477 Million Despite Rising GBTC Sales

Bitcoin ETF Grayscale
Last updated:
Freelance Journalist
Freelance Journalist
Andrew Throuvalas
About Author

Andrew is a journalist and content writer with a passion for Bitcoin. His work has been featured with Cryptonews, Decrypt, CryptoPotato, and Bitcoin Magazine, among others.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Bitcoin spot ETFs in the United States absorbed another $477 million in net flows on Thursday, maintaining record growth despite a revival of outflows from the Grayscale Bitcoin Trust (GBTC).

Data compiled from BitMEX Research shows that Bitcoin ETFs have absorbed over $400 million of flows for five of the last seven trading days. Since launch, they’ve now soaked up over $4.5 billion in BTC – or $11.3 billion when discounting outflows from Grayscale.

Non-Stop Flows For Bitcoin ETFs

About $330 million of flows went into BlackRock’s iShares Bitcoin Trust (IBIT), a top-five daily performance for the fund so far.

The Bitwise Bitcoin ETF (BITB), the fourth largest of the nine newly launched ETFs, saw its best day besides launch day, absorbing $120.2 million in funds.

“Grateful to investors entrusting Bitwise to steward their investment,” Bitwise CEO Hunter Horsley tweeted on Thursday. “Excited about 2024 for Bitcoin investors.”

Opposite to BlackRock and Biwise, Grayscale has suffered non-stop losses since converting into a Bitcoin ETF on January 11.

The firm’s relatively high fees encouraged investors to find cheaper BTC investment options. Additionally, long-term investors have taken the opportunity to cash out of the fund since its share discount was restored to parity upon conversion, including the FTX bankruptcy estate with its $900 million GBTC stash.

The BTC Supply and Demand Mismatch

Earlier this week, another bankruptcy estate was approved to sell its $1.3 billion in GBTC shares: Genesis – the trading desk that shares DCG as a parent company with Grayscale.

Some onlookers suspect the approval is what’s driven up GBTC outflows in recent days, possibly halting Bitcoin’s price momentum at $52,000. Outflows ramped up from $72 million on Wednesday to $132 million on Thursday, and again to $174 million on Thursday.

Given the ongoing demand for Bitcoin ETFs, some analysts – including Bitwise CIO Matt Hougan – have noted that Bitcoin is currently under a major “supply/demand mismatch” between the number of BTC produced since the ETFs went live versus the number absorbed by ETFs each day.

“With ETF demand… we’re just eating through the Available For Sale supply at $52k until there’s none left,” Onramp COO Jesse Myers wrote to X on Friday. “At that point… price has to jump to the next price level where there are willing sellers.”

More Articles

Blockchain News
Customs Hold Bitmain Equipment, Disrupting U.S. Bitcoin Mining Supply Chains
Hongji Feng
Hongji Feng
2025-02-13 18:53:47
Blockchain News
Why Decentralized Data Is Needed As AI Matures
Rachel Wolfson
Rachel Wolfson
2025-02-13 18:32:26
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors