Bitcoin Spot ETFs Break Outflow Streak, Accumulate $15.4 Million

Bitcoin spot ETFs saw a significant turnaround on Monday, accumulating over $15 million in inflows and snapping a five-day outflow streak. This surge in inflows could potentially gather pace as the quarter draws to a close, according to analysts.

The Nasdaq-listed spot bitcoin exchange-traded funds (ETFs) recorded inflows totaling $15.4 million on Monday, with Fidelity’s FBTC leading the way by collecting $261.8 million. BlackRock’s IBIT also saw a substantial inflow of $35.5 million. Other funds such as BITB, BTCO, EZBC, and BRRR received between $11 million and $20 million each. However, Grayscale’s ETF (GBTC) continued to experience outflows, losing just over $350 million.

The previous week had seen a cumulative outflow of $887.6 million, largely due to large withdrawals from GBTC. The debut of nearly a dozen spot ETFs in the U.S. on January 11 has allowed investors to gain exposure to bitcoin without the complexities of owning and storing the digital asset. These ETFs invest directly in bitcoin, eliminating the need to rollover positions, a key feature of futures-based ETFs that launched in October 2021.

Since the spot ETFs began trading, bitcoin has surged over 50% to reach $70,750. On Monday, prices rose by just over 4%, briefly surpassing the $71,000 mark.

Markus Thielen, founder of 10x Research, highlighted that quarter-end flows could be stronger than usual, potentially driving the cryptocurrency’s price to new highs. He noted that the sudden turnaround in Bitcoin ETF flows on Monday, particularly with Fidelity’s significant inflow, could indicate positive flows continuing into Tuesday. Thielen emphasized the importance of spot ETF inflows and the issuance of dollar-pegged stablecoin tether (USDT) for Bitcoin to make another aggressive move higher.

Overall, the recent influx of inflows into Bitcoin spot ETFs signals renewed investor interest in the cryptocurrency and could potentially fuel further price growth as the quarter comes to a close.