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Bitcoin ETF Landscape: BlackRock Surpasses Grayscale with $38.4 Million Net Inflows

Bitcoin exchange-traded funds (ETFs) witnessed a net inflow of $38.4 million on February 1st, marking the fifth consecutive day of positive flows. Notably, Grayscale’s Bitcoin Trust ETF (GBTC) experienced a significant net outflow of $182 million during the same period. In contrast, the combined net inflow for the remaining nine ETFs, excluding Grayscale, reached $220 million.

BlackRock’s iShares Bitcoin Trust (IBIT) outperformed Grayscale’s GBTC in trading volume on February 1st, marking a noteworthy development since the introduction of spot Bitcoin ETFs in the U.S. on January 11th.

In the initial three weeks post the ETF launch, GBTC led in trading volumes, representing almost half of the total trading activity among the ten available ETFs, with approximately $14.4 billion out of $29.3 billion traded.

However, on February 1st, IBIT by BlackRock recorded trading volumes of $302 million, surpassing the $292 million seen by GBTC. This shift coincides with Grayscale facing challenges, leading to net outflows and a reduction in its Bitcoin holdings by 5,086 BTC, equivalent to about $218 million.

Despite Grayscale’s outflows, the overall ETF sector has displayed robust investment activity. BlackRock’s IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have attracted substantial net inflows, accumulating approximately $2.8 billion and $2.5 billion, respectively, since their market introductions.

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