These Bitcoin spot ETFs see the first day with zero earnings.

Activity around Bitcoin spot ETFs has slowed significantly this week, with two major funds losing their undefeated streams of income since launch.

On Monday, both the Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB) saw a first day of net zero gains.

Loss of momentum for Bitcoin spot ETFs

According to data from Bloomberg Terminal, the daily volume in both ETFs was $23.4 million and $50.5 million, respectively. The fact that Bitwise averaged $54.2 million in daily volume and Arc averaged $106 million in the first 16 trading days is a clear step up in the performance of both funds.

Both BITB and ARKB US Bitcoin spot ETFs have emerged as the “middle class” in a race that is perceived as the “winner of winners”. Because liquidity is so important to ETF traders, they are generally encouraged to cluster around one of a variety of similar products.

However, the popularity of Bitcoin spot ETFs has provided room for runners to thrive. Despite being the third and fourth largest of the nine new Bitcoin spot ETFs launching on January 11, both Bitwise and Ark took 31,000 BTC in a month, worth more than $1.3 billion.

Ahead of them are BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) – the clear favorites that have accumulated more than 137,000 BTC since launch, according to BitMEX research. Both IBIT and FBTC were the only contenders to see net gains on Monday, maintaining the flow of earnings for 16 straight trading days.

According to Bloomberg ETF analyst Eric Balchunas, BlackRock's success puts it in the top 5 ETFs for year-to-date flows, ahead of 99.98% of its competitors. “The 17-day ETF in the top 5 is wild,” he wrote in a post on X on Tuesday.

Grayscale Waning sales pressure

Last week, the BlackRock fund surpassed Greyscale Bitcoin Trust (GBTC) in daily trading volume.

Grayscale has seen its own outflows, but in the opposite direction: a consistent outflow since switching to ETFs, losing 146,000 of its 600,000 BTC holdings.

Greyscale's spending on Monday was just $107.9 million. This was the second smallest daily sell-off since its launch, continuing a trend of slowing flows that was a big concern for Bitcoin owners, who were concerned about the impact on the market.

Profitable in ETFs everywhere, including Grayscale, Bitcoin funds have experienced net outflows of more than $1.5 billion since last month.