Bitcoin ETF (BTC) Sees $100M Surge Amidst $50M GBTC Outflow: A Crypto Market Shift

  • On May 14, the Bitcoin spot ETF market saw a total net inflow of $100.5 million.
  • Ark Invest accounted for the majority of this inflow with a total net inflow of $133 million.
  • However, Grayscale’s GBTC recorded a net outflow of approximately $51 million on the same day.

Bitcoin spot ETF market experiences significant inflow, led by Ark Invest, while Grayscale’s GBTC sees outflow. The market’s activity impacts Bitcoin’s price volatility.

Bitcoin Spot ETF Market Sees Major Inflow

According to data from Soso Value, the Bitcoin spot ETF market experienced a significant net inflow of $100.5 million on Tuesday, May 14, 2024. A closer look at the details reveals that Ark Invest and 21Shares ETF (ARKB) were responsible for the majority of this inflow.

Grayscale’s GBTC Records Net Outflow

While the Bitcoin spot ETF market was experiencing an influx, Grayscale Bitcoin Trust (GBTC) was seeing a net outflow. On the same day, GBTC recorded a total net outflow of approximately $51 million, making it the only Bitcoin spot ETF product with a negative inflow on that day.

Total Net Assets of Bitcoin Spot ETF Increase

Despite the outflow from GBTC, the total net assets of the Bitcoin spot ETF market increased by 4.2% on Tuesday, bringing the total value traded in the market to $977.78 million as of May 14. The total net assets of the Bitcoin spot ETF are now worth $50.99 billion.

Other ETF Products Contribute to Total Net Inflow

Other ETF products also contributed to the total net inflow on Tuesday. Fidelity’s FBTC saw an inflow of $8 million, Invesco’s BTCO attracted $6 million in inflow, while VanEck’s HODL recorded an inflow of $2 million. Franklin Templeton’s EZBC and Valkyrie’s BRRR also saw inflows of $2 million and $1 million respectively.

Bitcoin Price Reacts to Market Activity

Bitcoin’s price showed significant volatility in response to the activities in the Bitcoin spot ETF market. This volatility was most noticeable midway through the trading day, coinciding with the opening of the U.S. market. Bitcoin’s price fluctuated between $61,100 and $62,300 within one hour before settling into a downward direction. However, early signs of an upside recovery were evident on Wednesday, May 15, with Bitcoin trading at $61,913 after gaining almost 1% since the trading session opened.

Conclusion

The Bitcoin spot ETF market continues to see significant activity, with major inflows and outflows impacting the price of Bitcoin. As the market evolves, these dynamics are likely to continue influencing Bitcoin’s price volatility, providing both opportunities and risks for investors.

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