Inflows to spot bitcoin ETFs drop on second day of trading
Fund inflows to exchange traded funds (ETFs) tied to the spot price of bitcoin dropped to about $200 million on the second day of trading after attracting $629 million on their debut on Jan. 11, early estimates from J.P. Morgan showed.
Eleven such ETFs, with total assets under management worth $27.9 billion, entered the U.S. stock market in a watershed moment for the cryptocurrency industry after years of regulatory tussle over investor protection.
So far, ETFs by BlackRock and Fidelity have attracted the most funds at nearly $500 million and $423 million, respectively, in the first two days of trading, the brokerage estimated.
However, details on fund flows from issuers such as Bitwise, Franklin and VanEck are still awaited.
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View Details» Bitcoin has surged nearly 60% since September end on bets that an approval would usher in new capital as exposure to the world's biggest digital asset on a regulated exchange removes the hassle of directly owning it.
On the debut day, $4.6 billion worth of shares changed hands across all the products with Grayscale, BlackRock and Fidelity dominating trading activity.
The $26.53 billion Grayscale Bitcoin Trust, which charges the highest fees at 1.5% among the 11 ETF issuers, saw outflows of $478 million over the first two days, J.P.Morgan said.
Profit-taking from early investors on the fund was widely expected as it was earlier a close-end fund trading at a discount to its underlying bitcoin assets.
J.P.Morgan had in November estimated that the fund could record nearly $3 billion in outflows after
