In a notable shift within the digital asset market, a group of spot Bitcoin Exchange-Traded Funds (ETFs) has recorded their first collective outflow since trading began on January 11. This development marks a potential change in investor sentiment toward these financial products.

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• Spot Bitcoin ETFs experience their first collective outflow since their market debut on January 11, indicating a shift in investor interest.
• Grayscale’s Bitcoin Trust (GBTC) sees substantial withdrawals, while other funds like BlackRock’s IBIT and Fidelity’s FBTC show slowed growth despite significant holdings.
• Recent net inflows into the 10-spot Bitcoin ETFs remain substantial at $824 million, despite the overall market pullback and reduced daily contributions.

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Spot Bitcoin ETFs Witness First Outflow Since Inception

Grayscale’s GBTC Faces Investor Retreat

The most significant outflows have been from Grayscale’s Bitcoin Trust (GBTC), which has long been a favored option for investors looking to gain exposure to Bitcoin through a stock exchange. Data from Bloomberg Intelligence analyst James Seyffart revealed that, on a recent Wednesday, the total net outflow from the 10 spot Bitcoin ETFs, GBTC included, amounted to $158 million.

A Detailed Examination of Holdings

On January 24, the combined Bitcoin holdings of these spot ETFs were about 649,000, down from over 660,000 a week earlier, a reduction of around 11,000 Bitcoin. Grayscale’s GBTC saw its holdings decrease significantly, from 592,098 Bitcoin to 523,516 Bitcoin. In contrast, BlackRock’s IBIT and Fidelity’s FBTC have experienced substantial growth in their Bitcoin holdings, each managing more than 40,000 Bitcoin and nearing $2 billion in assets under management.

Inflows Ease for Market Leaders

Despite the growth in assets, the pace of new investments into BlackRock’s IBIT and Fidelity’s FBTC has slowed. BlackRock added a mere 1,663 bitcoins on January 24, the fund’s smallest daily increase since its launch.

Noteworthy Inflows Amidst the Pullback

Even with these recent headwinds, the total dollar inflows into the 10-spot Bitcoin ETFs since their inception have been significant. Bloomberg analyst Eric Balchunas calculated these inflows to be around $824 million, equating to a net acquisition of an estimated 17,000 to 20,000 bitcoins.

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