- Spot Bitcoin ETFs have recorded $664.2 million in cumulative net inflows since Monday, July 8.
- Grayscale’s GBTC fund, on the other hand, continues to shed millions.
- Grayscale plans to launch a “mini fund” version of GBTC with a 0.15% management fee.
U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs) have posted yet another consecutive day of net inflows as institutions scramble to accumulate BTC under $60,000.
Adding hundreds of millions to their funds since Monday, the crypto markets remain in a state of FUD as Germany and Mt. Gox redistribute thousands of BTC tokens into the market.
Bitcoin ETFs on a Roll
As per data from Farside Investors, U.S. spot BTC ETFs drew a modest $78.9 million in net inflows on July 11, 2024, marking the fourth consecutive day of net inflows this week.
Securing a majority of the inflows, the BlackRock iShares Bitcoin Trust (IBIT) was the biggest gainer of the day, yet again, drawing $72.1 million into its $18 billion fund. Conversely, the Grayscale Bitcoin Trust (GBTC) once again resumes its losing streak, shedding $37.7 million in outflows.
Only three other funds recorded positive flows, namely the Fidelity Wise Origin Bitcoin Fund (FBTC) recorded $32.7 million, the Bitwise Bitcoin ETF (BITB) drew $7.5 million, and the ARK 21Shares Bitcoin ETF (ARKB) saw the lowest inflows of $4.3 million.
Extreme Fear
Since Monday, U.S. spot BTC ETFs have seen a total inflow of approximately $664 million while BTC struggles to break past the $60,000 price mark. According to the Bitcoin Fear and Greed Index, the market is in extreme fear.
A great deal of the price activity is believed to be the chaotic sentiment and FUD spurred by the German government’s Bitcoin sell-off and Mt. Gox repayments worth billions.
Seemingly, the fear phenomenon is hitting retail investors the hardest, and institutional investors are completely unphased, clearly eager to buy up more BTC while it is below the $60,000 threshold.
GBTC Mini Fund?
Grayscale seems aware that its fund is failing, in large part due to the hefty 1.5% management fee it carries. A majority of other BTC ETFs offer fees of 0.25% or below, which has proven effective in drawing investors in and may be why GBTC has seen such consistent and significant outflows since inception.
From the moment it launched, GBTC was averaging hundreds of millions in outflows from its fund, which has since shed over $18 billion from its net assets. To address the hot streak of outflows, Grayscale revealed in March 2024 that it was planning a spinoff version of the GBTC fund called the Grayscale Bitcoin Mini Trust with a fee of 0.15%.
Imaginably, GBTC investors are eager to convert over to a Bitcoin ETF. That said, not much has come of it since filing its application with the U.S. Securities and Exchange Commission (SEC).
