Spot Bitcoin ETFs Surpass $20 Billion in Net Flows, Marking a New Milestone

Data from Farside Investors shows that as of Thursday, the total net flows of Bitcoin ETFs has reached $20.7 billion

Bitcoin exchange-traded funds (ETFs) have hit a new record, with total net flows crossing the $20 billion mark for the first time. This milestone comes just nine months after the launch of these funds, highlighting the strong demand for direct exposure to BTC among institutional investors.

According to data from Farside Investors, the total net flows into Bitcoin ETFs stood at $20.7 billion as of Thursday. Asset management giant BlackRock (NYSE:IBIT) led the way with its iShares lineup, followed by Fidelity Investments (NYSE:FBTC).

The significance of this achievement was noted by Bloomberg senior ETF analyst Eric Balchunas. He pointed out that compared to gold ETFs, which took around five years to reach the same level of flows, spot BTC ETFs have accomplished this feat in a much shorter timeframe.

"It took gold ETFs about 5yrs to reach the same number. Total net flows are the most important number and the most difficult metric to grow in the ETF world," Balchunas said.

Over the past four days, U.S.-listed ETFs saw an accumulation of $1.8 billion. Of this, IBIT’s ETFs brought in the highest, to the tune of nearly $1 billion.

Grayscale's Poor Performance

While the spotlight shines brightly on BlackRock and Fidelity's spot BTC ETFs, and several other U.S.-listed ETFs, one fund has faced a contrasting fate: Grayscale's GBTC.

The ETF witnessed outflows to the tune of a staggering $20 billion, compared to the $22 billion in inflows seen by IBIT. Moreover, GBTC had several days without any inflows, and on some days, it even saw millions flowing out.

Analysts have attributed this poor performance to GBTC's high fee structure, which is significantly higher than the expense ratios of other funds within the lineup.

Ultimately, the lackluster performance of the GBTC ETF has served as a blemish in the otherwise stellar ascent of other U.S.-listed ETFs, including those that have seen smaller but consistent inflows.

Bitcoin Price Unmoved by ETF News

Despite the monumental news surrounding spot BTC ETFs, the price of Bitcoin remained largely unaffected.

At one point late Thursday, the world's leading cryptocurrency by market capitalization briefly surged past the $68,000 level. However, within hours, it retreated to around $67,500. As of early Friday, BTC was trading above $67,700.

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