Patcay.com – Inflows into the nine recently launched exchange-traded funds (ETFs) linked to bitcoin have resumed their upward trend this week following the cryptocurrency’s price recovery from last week’s dip.
“The renewed strong performance of bitcoin is sparking fresh interest in the ETFs,” said Todd Rosenbluth, head of research at VettaFi, an analysis firm.
According to data from BitMEX Research, the nine funds that debuted in January attracted over $1.2 billion in assets in the first three days of this week.
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During the initial two days of the week, the leadership shifted from BlackRock’s iShares Bitcoin Trust to the Fidelity Wise Origin Bitcoin Fund. BitMEX data indicated that the latter garnered more than double the flows compared to BlackRock’s fund before the iShares ETF reclaimed the lead on Wednesday with the strongest inflows since mid-March.
The Grayscale Bitcoin Trust, which had previously operated as a publicly traded trust before transitioning into an ETF on the same day as the other nine ETFs launched, continues to defy this trend.
It has experienced consistent outflows since then, regardless of bitcoin’s price movements. In the first three days of this week, outflows from the trust amounted to $862.2 million.
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“At the moment, the figures are being heavily influenced by Grayscale,” said David Mercer, CEO of LMAX Group, an institutional cryptocurrency exchange.
Despite the sizeable flows in the ETF market, they are “a rounding error” when compared to the total market capitalization of bitcoin itself, Mercer noted.
Nevertheless, he observed that ETF flows appeared to be impacting bitcoin’s price at present. “One thing’s for sure: the bitcoin price couldn’t rally when you saw outflows in the ETFs,” Mercer remarked.