Bitcoin ETFs are seeing record institutional adoption and organic growth, according to ETF experts.
Key findings
- On September 9, BlackRock’s iShares Bitcoin Trust experienced a $9 million withdrawal issue.
- US Bitcoin ETFs reversed an eight-day outflow trend, delivering net inflows of over $28 million.
BlackRock’s iShares Bitcoin Trust (IBIT) saw about $9 million in net outflows on Sept. 9, marking its third day of outflows since its launch in January. However, net inflows into U.S. Bitcoin exchange-traded funds (ETFs) turned positive, reversing a trend of outflows that had been ongoing for the past eight trading days, according to data from Farside Investors.
IBIT’s losses on Monday came after the second outflow in history was observed on 29 August, followed by a short period of zero flow in early September.
The fund as a whole attracted stable infusions, accumulating a total of about US$21 billion. assets exceeded 350,000 bitcoins. IBIT reported its first outflow on May 1, when $37 million was withdrawn, which coincided with the largest single-day outflow of US spot Bitcoin ETFs.
Investors poured more than $28 million into the Fidelity Wise Origin Bitcoin Fund (FBTC) on Monday, bringing the fund’s net inflows to nearly $9.5 billion over the past eight trading months.
Meanwhile, the Bitwise Bitcoin ETF (BITB) has raised $22 million, and the ARK 21Shares Bitcoin ETF (ARKB) reported net worth of about $7 million. The Invesco Galaxy Bitcoin ETF (BTCO) has also raised about $3 million in new funding.
Grayscale Bitcoin Trust (GBTC) continued to lose assets, losing almost $23 million in trading on Monday.
While the bleeding may have slowed, investors are still pulling money out of the fund. About $20 billion has left GBTC since it was converted into an ETF, according to the data.
As a result, GBTC’s assets under management (AUM) fell from more than 620,000 bitcoins (BTC) to approximately 222,700 BTC, according to data updated data from Grayscale. It represents BTC Stocks Decline by 60% since its conversion to an ETF.
Overall, US spot Bitcoin ETFs ended Monday with net inflows of over $28 million.
Investment Advisors Drive Organic Growth in Bitcoin ETFs
Investment advisers are integrating spot bitcoin ETFs into their portfolios faster than any other ETF in history, Bitwise CIO Matt Hougan said, responding to recent criticism from researcher Jim Bianco, who pointed out that just 10% of assets under management of spot bitcoin ETFs traded in the U.S. are owned by advisers.
In analyzing BlackRock’s iShares Bitcoin Trust (IBIT), Hougan noted that $1.45 billion in net advisor flows makes IBIT the second-fastest-growing ETF launched in 2024 out of more than 300 funds. That’s in contrast to KLMT, an ESG ETF that, despite being the largest by assets, sees minimal trading and little advisor interest, according to Bitwise CIO.
Echoing Hougan’s view, Bloomberg ETF analyst Eric Balchunas said the net flow into advisor allocations actually represents more organic inflows than any other ETF launched this year. He added that more than 1,000 institutions now hold bitcoin ETFs after just two 13F filing periods, a record he called “more than unprecedented.”
The analyst expects institutional holdings in IBIT to double over the next year.
