Fidelity’s Bitcoin ETF, known as FBTC, seems to be on fire, pulling in a whopping $208 million in capital on January 29th. This performance far outshines Grayscale Bitcoin Trust’s (GBTC) outflows. According to data from Farside Investor, FBTC managed to attract this significant capital infusion on a single day, surpassing GBTC’s $192 million outflows – the lowest daily outflow since January 12th, as reported by BitMEX Research.
The latest outflows from GBTC mark nearly a 25% decline from the $255 million recorded on January 26th and a substantial 70% drop from the fund’s peak daily outflow of $641 million on January 22nd. Interestingly, this also stands as the second-lowest day of outflows for Grayscale’s fund, aside from $95 million leaving on January 11th, which was the first trading day since GBTC transitioned into a Bitcoin ETF spot.
JPMorgan analysts noted on January 25th that the GBTC outflows were causing downward pressure on Bitcoin prices but added that “the migration may be behind us.”
On January 29th, the data showed that the nine new US Bitcoin ETF spot funds collectively amassed a total volume of $994.1 million, almost double that of GBTC, which had a volume of $570 million, according to data shared by ETF analyst James Seyffart of Bloomberg. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin’s Bitcoin Fund (FBTC) have the largest market share by volume after GBTC, with respective daily volumes of $460.9 million and $315.4 million, accounting for 78% of the total volume of the nine new ETF funds.
Meanwhile, in a bid to enhance competitiveness, Invesco and Galaxy Asset Management have recently lowered fees for their joint ETF fund, Invesco Galaxy Bitcoin ETF (BTCO). They announced on January 29th that the new fee would be 0.25%, down from 0.39%. This move is aimed at attracting more investors to their fund.