United States-approved spot Bitcoin exchange-traded funds (ETFs) have shown resilience amid the recent waves in the crypto market. The funds recorded only seven days of outflow in November and started this month with a 14-day inflow streak.
Following the U.S. interest rate cut on Wednesday and the speech by Jerome Powell, Chair of the Federal Reserve Board, bitcoin (BTC) dropped by almost 5% to hit the $100,000 mark. Despite this sharp plummet, the ETFs closed the business day on the green side, signaling increased investor confidence in the world’s leading crypto.
Over $6 Billion in 14 Days
According to data from ETF tracker Farside, between November 29 and December 18, 2024, U.S. spot Bitcoin ETFs have immersed about $6.35 billion from investors who have shown interest in BTC but do not want to go through the procedures of acquiring it from a crypto exchange or managing a self-custodial wallet.
Notably, BlackRock’s Bitcoin Trust, IBIT, dominated about 90% of the inflow streak with a whopping $5.8 billion intake. Concluding Wednesday, the fund has recorded a massive net inflow of $37.4 billion with just seven outflow days since its debut in January.
Trailing IBIT is Fidelity’s FBTC, which had an inflow of $1.08 billion within the 14-day period and just one outflow day. The other nine ETFs had minimal inflows, and only Grayscale’s GBTC stained the market with its ten outflow days.
GBTC has recorded more outflows than the collective inflows of the other nine bitcoin ETFs, excluding IBIT. This is because of its high maintenance fee of 2.0%, while its competing ETFs are charged at just 0.25% per annum. Grayscale has launched a mini bitcoin trust, with the ticker IBIT, which has been on the green side with over $1 billion in inflows since its launch in late July.
Crypto ETFs in the U.S.
Following the approval of spot BTC and ether (ETH) ETFs in America earlier this year and their positive impact on the market, asset managers have developed more confidence and filed for other crypto ETFs, including spot Solana and XRP ETF.
Meanwhile, the forthcoming resignation of U.S. crypto-pessimistic Chair Gary Gensler in January has boosted optimism that the ETF applications may be approved early next year.
