The US bank JPMorgan is not convinced of the success of the Bitcoin (BTC) spot ETFs after the first two weeks of trading. Although the GBTC exchange fund is emptying less quickly than before, the other ETFs are not doing enough to turn the tide. This emerges from a report by the American bank JPMorgan published last week. But where are we doing this week?
Huge amounts of money are disappearing from European Bitcoin ETFs
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Bitcoin news
This week’s Bitcoin ETF numbers
According to Bloomberg, JPMorgan describes the previous performance of the ten Bitcoin ETFs as “disappointing”. This is also one of the reasons for the downgrade of Coinbase (COIN) stock. However, the numbers still looked hopeful at the beginning of the week. The outflow from Grayscale’s GBTC ETF began to slow. After three days, however, it becomes clear that the inflow into the other nine ETFs is not exactly increasing.
On Monday, we saw GBTC outflows decrease slightly compared to last Friday. On Tuesday, the outflow fell even further, reaching 6,200 BTC, worth $270 million. On Wednesday, GBTC outflow increased slightly again to 8,000 BTC, worth $340 million.
One bright spot: the trading volume of Blackrock’s IBIT is now as high as the volume of Grayscale’s GBTC. Inflows into the non-GBTC ETFs were around $250 million on both days on Monday and Tuesday. However, GBTC outflow remains significant and therefore outflow is still higher than net inflow this week.
Today #Bitcoin Sent by $GBTC/Grayscale is ~8K $BTC or worth about $340 million.
Increased slightly compared to yesterday. Yesterday was another good day with inflows of +$247.2 million.$IBIT also suitable $GBTC in daily volume now. pic.twitter.com/CJYG5zuuEA
— Daan Crypto Trades (@DaanCrypto) January 31, 2024
Was the Bitcoin ETF launch a success?
So it’s understandable that JPMorgan isn’t exactly impressed with Bitcoin ETFs. The fact is that the Bitcoin ETF launch was the most successful ETF launch ever in terms of volume, number of trades and capital flow.
However, not everyone agrees with this. Crypto commentator Ran Neuer called day one of Bitcoin ETFs “terribly unsuccessful“. His reason for this was the large outflow of GBTC, which brought the total net inflow to almost $0.
The first two weeks obviously leave a lot to be desired. But no one promised that the ETFs would break records every day and steadily increase in value. That’s just not how financial markets work. So it is still far too early to draw conclusions about the success of Bitcoin ETFs. In the long term, Bitcoin exchange funds will undoubtedly provide capital growth and drive further adoption.
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