The Defiant

Spot Bitcoin ETF Flows Slow To Record Low

Feb. 6 hosted just 23% of the average daily spot Bitcoin ETF flows.

By: Samuel Haig Loading...

Spot Bitcoin ETF Flows Slow To Record Low

The initial wave of hype surrounding the newly launched cohort of spot Bitcoin ETFs, with the products’ daily capital flows dropping to unprecedented lows this week.

Data  compiled by James Seyffart, an ETF analyst at Bloomberg, shows just $106.5M worth of assets entering and exiting spot Bitcoin exchange-traded funds on Feb. 6. The 17th day of trade also hosted $33.7M worth of inflows to Bitcoin ETFs overall, with inflows offsetting $72.7M exiting Grayscale’s Bitcoin Trust ETF.

The ETFs from BlackRock and Fidelity continue to lead the sector by inflows, taking in $45.2M and $37.7M respectively. By contrast, the ETFs from Bitwise, Franklin Templeton, and Valkyrie posted capital flows of $0.

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Spot Bitcoin ETF flows. Source: Bloomberg.

The previous day  hosted a $68.1 inflow from $176M worth of flows in total. Only BlackRock, Fidelity, and WisdomTree posted positive flows on Feb. 5, taking in $137.3M, $38M, and just $700,000 respectively, while $107.9M exited Grayscale’s fund.

For context, spot Bitcoin ETFs have hosted $7.83B worth of flows over 17 days, equating to average daily flows of $460M and a net inflow of $1.68B. Average daily performance sits at an inflow of $98.8M despite the sector posting daily outflows between Jan. 19 and Jan. 26, according to  data compiled from ETF.com.

Bitcoin ETF volume is also slowing, with $692.1M worth of shares trading hands on Feb. 6, down from a daily average of $1.87B. The funds have hosted $31.8B worth of trades since launching.

A recent drop in volatility across the cryptocurrency markets may be contributing to the slump in ETF activity, with BTC and other leading digital assets trading mid-range after partially recovering from a late-January pull-back.

However, market movements have picked up over the past day, with BTC gaining 3.8% and ETH up 2.7% in 24 hours to post multi-week highs, according to CoinGecko.

Ether ETF delays

In other crypto ETF news, the U.S. Securities and Exchange Commission  delayed the deadline for its verdict on the spot Ether ETF application from Galaxy Digital and Invesco on Feb. 6. The move followed similar delays from the SEC concerning pending spot Ether ETF filings from BlackRock, Grayscale, and Fidelity.

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Seyffart said the delay was “100% expected,” tipping that the SEC will delay other Ether ETF applications in the coming months. Seyffart emphasized that the final deadline for a verdict on VanEck’s Ether ETF bid looms for May 23, suggesting the SEC may be lining the applications up for approval around that date.

The SEC similarly delayed spot Bitcoin Ether applications until early January, before approving 10 different funds on Jan. 10.

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