Bitcoin ETFs Reach New Heights with $400 Million Inflows, Surpassing $2 Billion Total

Thursday marks third best day yet as Bitcoin price jumps to $48,000; Blackrock and Fidelity lead inflows, Grayscale sees slowed outflows.

Bitcoin exchange-traded funds (ETFs) witnessed a significant milestone on Thursday as they experienced a remarkable $400 million in net inflows, pushing their total inflows since inception above $2 billion for the first time. This surge in inflows coincided with a late-week rally in Bitcoin's price, reaching $48,000 by Friday.

Thursday marked the third best day for Bitcoin ETFs in terms of daily flows since their launch on January 11. The launch day remains the peak, with total inflows reaching $655 million, followed by January 17 with $453 million.

These figures encompass flows from the Grayscale Bitcoin Trust (GBTC), which transitioned into a spot ETF last month. However, the fund, with its 1.5% management fee significantly higher than competitors, has faced outflows totaling $6.3 billion since the conversion, without any inflows during this period. Nevertheless, outflows have notably slowed in recent weeks, from approximately $500 million per day three weeks ago to around $100 million per day this month.

On Thursday, GBTC experienced $101.6 million in outflows. In contrast, eight out of nine funds managed by competitors, except Franklin Templeton, saw net gains, accumulating $506.7 million in total.

The bulk of these flows went to BlackRock and Fidelity, the top two newcomers, with their funds attracting $204.1 million and $128.3 million, respectively. Their combined daily volume reached $480.3 million, surpassing Grayscale's $371.8 million.

In contrast to Grayscale, both BlackRock and Fidelity have maintained a streak of daily inflows throughout their first month of operation. Moreover, both have set records for the most assets ever recorded by a new ETF within their first 30 days, with two days left in the month.

Additionally, two other Bitcoin ETFs launched by Bitwise and Ark Invest have also made their mark, securing positions in the top 25.