Fidelity’s spot Bitcoin ETF witnessed a significant capital inflow of $208 million on January 29, marking a notable event as it surpassed the outflows from Grayscale Bitcoin Trust (GBTC) for the first time since its inception, excluding its launch day. On the same day, GBTC saw a substantial outflow of $192 million, indicating a shift in investor interest towards Fidelity’s FBTC product.
Shifting Tides in Bitcoin Investment Vehicles
GBTC’s recent outflows represent a significant decrease from previous figures, with a 25% drop from $255 million on January 26 and a steep 70% decline from the highest daily outflow of $641 million on January 22. This also signifies the second-lowest outflow day since January 11. Investors and analysts are closely monitoring these outflows, which could suggest a slowdown and a potential easing of downward pressure on Bitcoin prices.
The overall market for spot Bitcoin ETFs in the US is expanding, with nine new products reaching a combined volume of $994.1 million on January 29, nearly doubling GBTC’s volume. BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund were among the top performers, contributing significantly to the total volume.
In the competitive landscape of Bitcoin ETFs, issuers are actively reducing commission fees to attract more investors. Invesco and Galaxy Asset Management have joined the trend, announcing a fee reduction for their Invesco Galaxy Bitcoin ETF, aligning with other major players like BlackRock and Fidelity.
The fee reductions are not limited to the US market; European ETF providers are also slashing fees. Invesco, WisdomTree, and CoinShares have all recently announced cuts in their fees for Europe-based Bitcoin ETFs, reflecting a broader trend in the industry aimed at attracting investors through lower costs.