Bitcoin ETF Experiences First Ever Negative Trend Since Launch

• Spot Bitcoin ETFs Witness an Aggregated Negative Flow for the First Time
• Bitcoin ETFs Collective Outflow
• GBTC Records Actual Negative Flows
• A Slowdown in Fund Inflows
• Net Inflows Remain Significant

Spot Bitcoin ETFs Witness an Aggregated Negative Flow for the First Time

Recently launched spot Bitcoin$42,260 -0.64% exchange-traded funds (ETFs) have registered combined negative flows for the first time since they began trading on January 11. This negative shift is primarily due to fund inflows in BlackRock's IBIT and Fidelity's FBTC not keeping up with the outflows from Grayscale's GBTC.

Bitcoin ETFs Collective Outflow

Data collected by Bloomberg Intelligence analyst James Seyffart reveals that the 10 spot Bitcoin ETFs, including GBTC, saw a net outflow of $158 million on January 26. It is important to note that daily flows can be volatile. According to numbers assembled by CoinDesk from the issuers' websites, the total Bitcoin held by all spot ETFs, GBTC included, stood at 642,458 as of January 24, down from 660,540 a week earlier, indicating a decrease of more than 18,000 tokens.

GBTC Records Actual Negative Flows

The only fund to record actual negative flows over the week was GBTC. The total Bitcoin in the trust fell to 523,516, down from 592,098 a week before. On the other hand, the funds leading the remaining nine are BlackRock's IBIT and Fidelity's FBTC. As of January 24, each now holds over 40,000 Bitcoin, up from 20,000-25,000 a week ago. Both are nearing $2 billion in assets under management.

A Slowdown in Fund Inflows

Over the last several days, fund inflows for both BlackRock and Fidelity have decelerated. For instance, BlackRock added only 1,663 tokens on January 24, its smallest daily addition since commencement, a decrease from the 8,705 added on January 17.

Net Inflows Remain Significant

Despite the slowdown in the last week, the net inflows into these 10 spot ETFs since they began trading on January 11 have been significant. Eric Balchunas, a Bloomberg colleague of Seyffart, calculated the total dollar inflows to be $824 million since launch. This corresponds to a net Bitcoin addition of approximately 17,000-20,000 tokens.

Edited by Jonathan Stoker