Bitcoin ETFs Experience Inflow Reversal Amidst Price Stabilisation Near $85K

Bitcoin ETFs have reversed their outflows, recording $1.47 million in daily net inflows as the Bitcoin price stabilises near $85,000. The leading fund, BlackRock’s IBIT, maintains substantial net assets, followed by Fidelity’s FBTC and Grayscale’s GBTC, which has seen declines since its conversion to an ETF. The trend marks a shift in market sentiment after significant prior outflows, with trading volumes remaining strong across ETFs.

Bitcoin Exchange Traded Funds (ETFs) have recorded a positive shift in their inflow pattern, marking a reversal after a week of outflows. Recent data indicates that US Bitcoin spot ETFs achieved $1.47 million in daily net inflows as of April 14. This uptick in investment reflects a stabilising Bitcoin price around the $85,000 mark, breaking the downward trend observed in early April.

A performance review shows varied results across Bitcoin ETFs. BlackRock’s IBIT leads the market with net assets totalling $48.58 billion, registering a one-day price change of 1.28% with $1.57 billion traded on April 14. Despite leading in assets, IBIT reported $36.72 million in one-day net outflows. Fidelity’s FBTC follows with $16.63 billion in assets, experiencing a price increase of 1.32% and generating net inflows of $35.25 million.

Grayscale’s GBTC rank third with $16.14 billion in assets, accounting for 0.96% of Bitcoin’s market capitalisation. However, GBTC has been suffering from cumulative net outflows of $22.78 billion since its conversion to an ETF in January. Ark Invest’s ARKB possesses $4.01 billion in assets with no new inflows on April 14 but has accrued $2.58 billion in total since launch.

Smaller ETFs like BITB, HODL, and BRRR report net assets of $3.18 billion, $1.20 billion, and $486.69 million respectively. Notably, VanEck’s HODL experienced a slight price rise of 1.35% but saw outflows of $0.07 million on the same day. Fee structures are diverse, with FBTC offering the lowest at 0.00%, while GBTC charges a fee of 1.50%.

Market sentiment has shifted positively following a period of substantial outflows from Bitcoin ETFs. According to CoinShares, there were consecutive weeks of outflows totalling $795 million last week alone. Bitcoin funds endured the most significant withdrawals, about $751 million, representing 94% of total outflows, leading to cumulative losses of $7.2 billion since February.

Major fund managers experienced notable outflows during this period, with iShares ETFs losing $341.64 million and Grayscale facing $186.69 million in losses. Conversely, ProShares ETFs gained modest inflows of $3.70 million. This reversal appears synchronised with Bitcoin stabilising at the $85,000 level, signifying reinstated investor confidence in spot ETFs on April 14.

Despite the inflow and outflow variations, trading volumes across Bitcoin ETFs have remained robust. Total trading volume on April 14 reached $2.16 billion, with BlackRock’s IBIT representing over 70% of this volume at $1.57 billion. Fidelity’s FBTC registered the second-highest volume, trading $305.73 million, which is approximately 14% of the total. Grayscale’s GBTC also maintained significant trading at $96.29 million, while other funds like Ark’s ARKB and Bitwise’s BITB reported $76.13 million and $32.47 million in volume, respectively, showing price increases ranging from 1.25% to 2.5%.