- Bitcoin ETFs from BlackRock and Fidelity have outpaced GBTC in two liquidity metrics.
- Net inflow into spot exchange-traded products based on digital gold continued for the ninth consecutive day.
- IBIT entered the top 5 ETFs by inflows since the beginning of the year.
Spot Bitcoin ETFs from BlackRock and Fidelity have surpassed GBTC in two liquidity metrics, according to JPMorgan, reports The Block.
One indicator is the market breadth measure based on the Hui-Heubel ratio. This measure is approximately four times lower for IBIT and FBTC compared to their competitor.
The second indicator is based on the average deviation of the ETF’s closing price from its NAV. The metrics of the two exchange-traded funds have approached those of the popular SPDR Gold Shares, a trend not observed with Grayscale’s product.
Analysts explained that liquidity metrics are not limited to those mentioned but do show a certain advantage of IBIT and FBTC over GBTC.
They believe that if Grayscale Bitcoin Trust ETF continues to charge high fees, investors will prefer to move capital to competing instruments.
Latest Market Summary
According to SoSoValue, on February 7, the total net inflow into spot exchange-traded funds based on the first cryptocurrency was $146.1 million. The positive trend continued for the ninth consecutive day.
According to SoSoValue, on February 7, the total net inflow of Bitcoin spot ETFs was US$146 million, which has been net inflows for nine consecutive days. The Grayscale ETF GBTC had a single-day net outflow of US$80.78 million, and the other nine ETFs except Grayscale had a total…
— Wu Blockchain (@WuBlockchain) February 8, 2024
The net outflow from GBTC reached $80.78 million, offset by inflows into competitors ($225 million). Of this amount, $130.13 million went to FBTC, and $56.19 million to IBIT.
Since the approval of ETFs, investors have withdrawn $6.23 billion from GBTC, reducing its AUM to $20.68 billion. Competitors have attracted $8.05 billion, including $3.3 billion to IBIT and $2.81 billion to FBTC. The net inflow into this category reached $1.82 billion.
New Records for IBIT
According to Bloomberg analyst Eric Balchunas, IBIT has entered the top 5 in ETF flows since the beginning of the year [FBTC rose to eighth place in this ranking].
Also $IBIT now in Top 5 in YTD flows, which means it’s taken in more cash than 99.98% of ETFs. Not bad for 17 days old. pic.twitter.com/ehAsZWRoqK
— Eric Balchunas (@EricBalchunas) February 6, 2024
“This means it has attracted more funds than 99.98% of ETFs. Not bad for a 17-day-old instrument,” commented the specialist.
On February 3, IBIT and FBTC entered the top ten largest US exchange-traded funds by asset inflows.
Earlier in Hong Kong, which is on the path to launching spot Bitcoin products, lawmakers urged to expedite the initiative.
Analysts at ARK Invest have forecasted a rise in the price of digital gold to $120,000-$2,300,000 by 2030.
They cited drivers such as the approval of spot Bitcoin ETFs, halving, institutional adoption, and further reduction of regulatory uncertainty.