On January 10, 2024, a milestone in cryptocurrency markets was achieved as 11 Bitcoin Spot ETFs received their official approvals, initiating trading operations on January 11. This marked a significant one-year anniversary, during which Bitcoin Spot ETFs amassed a staggering net inflow of $36.374 billion over 250 trading days. Among these, BlackRock’s IBIT led the charge with a remarkable net influx of $37.85 billion, while Fidelity’s FBTC followed suit with an impressive $12.14 billion inflow. However, Grayscale’s GBTC diverged from this trend, witnessing a net outflow of $21.58 billion and highlighting a significant market shift.
Once a gateway for investors into Bitcoin, Grayscale Bitcoin Trust entered this competitive landscape with large holdings of 619,200 BTC prior to the launch of the spot ETF. Although it leveraged its substantial asset base post-transition, the higher management fee at 1.5% compared to its rivals prompted investors to redeem shares in favor of other available ETFs, thus reiterating its status as the only Bitcoin Spot ETF registering a net outflow.