he week preceding Bitcoin's third halving event saw US-listed spot Bitcoin exchange-traded funds (ETFs) experience five consecutive days of net outflows as investors adjusted positions ahead of the token rewards reduction. However, on April 20th, the trend reversed with the products recording a net inflow.
This continued into the following Monday where data shows total net inflows across spot BTC ETFs reached over $62 million. The Fidelity Wise Origin Bitcoin ETF (FBTC) led the additions, which absorbed $34.83 million. In second was the ARK 21Shares Bitcoin ETF with a $22.5 million net inflow. iShares' Bitcoin Trust also saw solid inflows of $19.65 million.
Grayscale Outflow Outpaces Other Funds
While others gained significantly, one product continued facing redemptions - the Grayscale Bitcoin Trust. Known by its ticker GBTC, the biggest BTC fund saw nearly $35 million flow out. This has often been the case even as the newer ETF competitors experience inflows. From their listings to date, cumulative net flows into US spot BTC ETFs have reached $12.38 billion.
Trading Volumes Break New Highs
Total volumes passing through spot BTC ETFs have also been reaching new peaks. In the week ending, cumulative trading had surpassed $226 billion, underlining the swift growth of this vehicle for crypto market access. Privately-held funds had dominated for years but regulatory approvals of ETF structures in 2024 opened the doors to wider institutional adoption.
BlackRock's $1.5 billion IBIT ETF extended its streak of consecutive daily inflows to 70 days on, highlighting its popularity among professional investors. Market share data shows IBIT commands nearly 54% of the spot BTC ETF universe, corroborating its leadership position. With such large holdings, these permanent capital vehicles have become meaningful institutions in their own right within the digital currency ecosystem.
Price Action Holds Steady Near Previous Levels
Following the halving-induced volatility in previous days, the price of the underlying Bitcoin asset pegged to these funds has stabilized. As of April 19th, 2024 Bitcoin was exchanging hands at just above $66,200, little changed from its pre-halving price. With the supply adjustment now absorbed, focus turns to the next macro drivers for the world's largest cryptocurrency by market value.
