Fidelity inflows smash Grayscale outflows as $255 million Bitcoin enters US market

cyptouser5 months agoCryptocurrencies News177

Grayscale’s Bitcoin Trust (GBTC) is experiencing a slowdown in outflows, with just under $200 million withdrawn from the fund on Jan. 29.

Data from BitMEX Research indicates a total outflow of around $192 million during this reporting period. Notably, this marks the lowest outflows since the fund’s inception, surpassing only the initial day of trading when withdrawals amounted to $95 million.

Meanwhile, a look at the newborn nine shows that the inflows into the funds keep offsetting that of Grayscale.

The Fidelity Wise Origin Bitcoin Fund (FBTC) emerged as a standout, concluding the twelfth trading day with the highest inflow at $208 million. In comparison, other funds, including BlackRock’s IBIT, experienced a $198 million inflow. ETFs such as BITB, ARKB, and BTCO recorded inflows of $20 million, $17 million, and $3 million, respectively, while others reported zero inflows.

Bitcoin ETF
Bitcoin ETF Flows (Source: BitMEX Research)

The robust trading activities contributed a net inflow of $255.6 million during the twelfth trading day.

GBTC maintains ‘liquidity crown’

However, Grayscale’s GBTC remains the top cryptocurrency ETF in liquidity, as Bloomberg Intelligence analyst James Seyffart observed.

Despite recent outflows, GBTC’s trading volume reached $570 million on Jan. 29, surpassing BlackRock’s IBIT by $110 million and reaffirming its market dominance.

Bitcoin ETF
Bitcoin ETF Flows and Volume (Source: Bloomberg)

Following its recent conversion, Grayscale’s ETF has experienced substantial outflows totaling more than $5 billion. Analysts attribute the outflows to profit-taking maneuvers by investors exposed to its previous net asset value discount.

Furthermore, the fund’s relatively high 1.5% management fee is cited as a factor that has led some investors to shift towards competing ETF providers such as BlackRock and Fidelity, who charge a lower fee of 0.25%.

As of Jan. 29, the outflows have resulted in Grayscale’s ETF’s Assets Under Management (AUM) dropping to approximately $21.431 billion (equivalent to 496,573 BTC) from its year-to-date peak of nearly $29 billion (623,390 BTC), as reported by the fund’s official website. This data indicates that fund users have divested over 100,000 units of the leading cryptocurrency since the approval of the ETF conversion.


Oluwapelumi Adejumo

Journalist at CyptoRanking

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

@hardeyjumoh LinkedIn Email Oluwapelumi Editor

Liam 'Akiba' Wright

Senior Editor at CyptoRanking

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CyptoRanking. He believes that decentralized technology has the potential to make widespread positive change.

@akibablade LinkedIn Email Editor Latest Report

The invisible engine: How OTC trading powers Bitcoin ETFs

Exploring the intricacies of OTC trading, providing a comprehensive understanding of this often overlooked but vital component of the market.

Andjela Radmilac · 2 days ago
The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Worldcoin tightens privacy checks, allows users to unverify World ID

Worldcoin tightens privacy checks, allows users to unverify World ID

1205f261˃Worldcoin, the digital identity and cryptocurrency project built by OpenAI CEO Sam Altman,...

Riot offers $950 million to buyout Bitfarms in hostile takeover amid CEO controversy

Riot Platforms has announced a proposal to acquire Bitfarms for approximately $950 million, reflecti...

US, UK initiate joint probe into $20 billion moved via crypto to evade Russian sanctions

The US and UK governments have launched a joint investigation into crypto transactions worth over $2...

Polkadot treasury allocates $14.4 million to bolster DeFi project Hydration

Polkadot Treasury has allocated 2 million DOT, valued at $14.4 million, to enhance the liquidity of...

How Bitcoin ETFs, the halving, and bull market is shaping crypto, according to Bitget

In this interview with Jamie Elkaleh, Bitget Regional Growth & Country Manager, we delve into th...

Tether announces restructuring to go beyond stablecoins

1205f261˃Tether — the operator of the eponymous Tether (USDT) stablecoin, the world’s largest stable...