BTC ETF approval led many experts to expect billions in stable inflows. This largely happened. However, the steady growth story did not fully materialize for the first three quarters. Recent outflows during a period of low volatility weakened cumulative growth. So, what is the current situation?
Spot Bitcoin ETF
Despite facing tough times due to outflows at the beginning of August, the ETF channel is not doing so badly. Despite the bloodbath in spot markets, the Spot Bitcoin ETF front remains strong. Moreover, despite summer sluggishness and increasing geopolitical risks, inflows continue. According to SoSoValue data, after previous outflows, the total net inflow was positive last week, exceeding $32 million.
On August 2, there was a net outflow of $80 million, and on August 9, a net outflow of $169 million. GBTC continues to lead in net outflows, but others, led by BlackRock, remain relatively strong. This demand comes even though many giants like JPMorgan have yet to offer BTC ETFs to their clients, which is another reason for investors’ optimism about the future.
All-time net outflows from GBTC amounted to $19.6 billion. GBTC Mini did not see net outflows on Friday and maintained a total net inflow of $288 million. The withdrawal of the application by NYSE Arca was another reason that triggered the outflow here.
BlackRock and Fidelity
Vanguard does not join the world’s largest asset managers. However, BlackRock alone manages over $10 trillion in assets, providing a huge investor base with access to Bitcoin.
Fidelity saw a net inflow of $9.8 billion all-time, while BlackRock surpassed the $20 billion threshold again, reaching $20.38 billion in inflows. Just these two ETFs alone represent nearly $30 billion in inflows. The total value of all ETFs is $54.35 billion. When we proportion the assets held by all BTC ETF issuers, we see that 4.65% of the supply has already passed into the hands of institutional investors.
Moreover, this ratio reaches much higher levels when combined with Coinbase Prime, cold wallets, and other alternative entry methods. According to the Morgan Stanley 13F filing received three days ago, the company holds $188 million in BTC ETF assets.
