Bitcoin ETFs take in $400 million a day, up from $2 billion since launch

Bitcoin spot ETFs recorded $400 million in net inflows on Thursday, bringing their total inflows above $2 billion for the first time since debuting.

The volume of the flow was linked to a rise in the price of Bitcoin at the end of this week, which took it to $48,000 as of Friday.

Bitcoin ETF will import and export.

In terms of daily flows, it was the third best day for Bitcoin ETFs since going live on Thursday, January 11. Their best performance remains the day they started on January 17, when they took in $453 million, when they withdrew a total of $655 million.

These figures include the Greyscale Bitcoin Trust (GBTC) – an existing fund that converted to a spot ETF last month. Since the fund's 1.5% management fee is significantly higher than its competitors, the fund has suffered $6.3 billion in outflows since the switch, without a single day of inflows since then.

That said, outflows have slowed significantly in recent weeks, from ~$500 million per day three weeks ago to ~$100 million per day this month.

On Thursday, the fund reached $101.6 million in spending. By contrast, excluding Franklin Templeton, eight of the nine funds managed by rivals were net gainers on Thursday, taking in a total of $506.7 million.

Blackrock and massive flows of loyalty

Most of those flows went to the top two newcomers, BlackRock and Fidelity, which took in $204.1 million and $128.3 million, respectively. It recorded an impressive daily gross of $480.3 million, surpassing Grayscale's $371.8 million figure.

“Typically, it takes 5-10 years for a new baby to come close to dethroning the category's liquid king(s),” said Bloomberg ETF analyst Eric Balchunas of Greyscale. “They all go back and forth a little bit every day, but over time the gap widens.”

Against Greyscale, both BlackRock and Fidelity still have flawless daily flow in their first month of operation. In fact, both funds broke the record for most assets held by any fledgling ETF in its first 30 days of life — and there's still two days to go.

Two other Bitcoin ETFs launched by Bitwise and Ark Invest also cracked the top 25.

By the end of the year, Bloomberg's James Seifert said the new Bitcoin ETF, which has more than $10 billion in total assets, “may take over.”