Fidelity Bitcoin ETF rakes in reported $208M, offsetting Grayscale outflows alone - DeviceFile

Fidelity Bitcoin ETF rakes in reported $208M, offsetting Grayscale outflows alone

Outflows from Grayscale’s Bitcoin fund slowed for the fifth day in a row, while Fidelity’s spot Bitcoin ETF saw one of its stronger inflow days since launch.

Fidelity’s spot Bitcoin exchange-traded fund (ETF) reportedly pulled in $208 million in daily inflows on Jan. 29, outstripping outflows from Grayscale Bitcoin Trust (GBTC) for the first time since its launch day.

According to provisional data from Farside Investors, Fidelity’s FBTC raked in $208 million in inflows on Monday, compared with the $192 million in outflows from GBTC — the lowest daily outflows outside of its re-launch, according to data from BitMEX Research.

The latest GBTC outflows mark a nearly 25% drop from $255 million on Jan. 26 and a 70% drop from the fund’s peak daily outflows of $641 million on Jan. 22.

It’s also the second-lowest outflow day for Grayscale’s fund, besides the $95 million that left the fund on Jan. 11 — the day it was converted to a spot Bitcoin

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Crypto traders are eagerly watching for signs of slowed GBTC outflows caused by the fund’s investors taking the chance to cash out of their once-underwater positions.

JPMorgan analysts noted on Jan. 25 that GBTC outflows have caused downward price pressure on Bitcoin but added that “should be largely behind us.”

Meanwhile, Jan. 29 figures show the nine new U.S. spot Bitcoin ETFs hit a combined $994.1 million in volume, close to doubling that of GBTC, which saw $570 million in volume, according to data shared to X by Bloomberg ETF analyst James Seyffart.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC saw the largest volume share behind the GBTC, pulling in respective daily volumes of $460.9 million and $315.4 million — 78% of the combined volume posted by the nine new ETFs.

The crowded market for spot Bitcoin ETFs has even reportedly seen fund issuers cut fees to attract investors in the U.S. and abroad.

Invesco and Galaxy Asset Management were the latest to drop fees on their joint ETF — Invesco Galaxy Bitcoin ETF (BTCO) — saying on Jan. 29 that its eventual expense ratio will be 0.25%, down from 0.39%.

The fee drop brings it down to the same level as BlackRock, Fidelity, Valkyrie and VanEck. BTCO has zero fees for the first six months or until it hits $5 billion in assets, after which the new lower fee will go into effect.

The stateside fee war may have also affected Europe’s ETFs, with speculation that traders are fleeing from Europe-based products to the U.S., according to research from CoinShares.

Last week, on Jan. 23, Invesco also slashed fees on its Europe-based Bitcoin ETF from 0.99% to 0.39%. It was joined by WisdomTree, which cut fees from 0.95% to 0.35%.

CoinShares followed on Jan. 25, cutting fees on its flagship Bitcoin ETF from 0.98% to 0.35%.