Bitcoin (BTC) ETF Inflows Dropped Sharply During the Week Ending May 8

Despite Bitcoin's continued price strength

Bitcoin ETF inflows dropped sharply during the week ending May 8, despite Bitcoin’s continued price strength.

This marked the lowest weekly inflow for Bitcoin ETFs since mid-April and continues a two-week trend of declining new capital.

Overall weekly inflow fell to $599.59 million during the week, down 67% from the previous week’s $1.81 billion.

BlackRock’s IBIT Remains Dominant Despite Overall Drop

The iShares Bitcoin Trust (IBIT) from BlackRock continues to lead the Bitcoin ETF space with a strong asset base and high inflows.

The fund reported an addition of $356.20 million in net inflows on May 9, topping the daily chart again. Its total assets reached $64.45 billion, holding over half of all Bitcoin ETF assets.

The product’s cumulative inflows since inception reached $44.71 billion, further reinforcing its strong market position in the competitive landscape.

Trading volumes remained solid, contributing to IBIT’s overall market presence, while price performance on May 9 was positive. The ETF benefited from capital inflow and Bitcoin’s price gains, driving asset growth.

Daily volume for IBIT supported the broader market trend, with overall ETF turnover dropping from recent highs.

Weekly volume fell to $9.27 billion, down from $13.23 billion the prior week. IBIT, however, maintained steady performance across trading activity and inflow metrics.

Fidelity’s FBTC Holds Second While Grayscale’s GBTC Sees Continued Outflows

Fidelity’s Bitcoin ETF, FBTC, stood firm in second place among Bitcoin ETFs, with $20.54 billion in total assets. On May 9, it saw $45 million in daily inflows, reflecting moderate demand for the product.

FBTC’s consistent growth since launch highlighted a stable position in the competitive ETF landscape, showcasing a capable contender to IBIT.

However, Grayscale’s Bitcoin Trust (GBTC) reported persistent outflows, with $65.16 million in net redemptions on May 9. Its total assets dropped to $19.47 billion, narrowing the gap with FBTC.

Unlike spot ETFs with new inflows, GBTC has faced net outflows weekly since mid-February as investors prefer lower-fee or spot-based alternatives, leading to this differential.

Overall sentiment varied between the two funds as FBTC retained inflows while GBTC saw withdrawals, showcasing diverging investor preferences within the Bitcoin ETF market.

The varying fortunes of the two funds highlight the evolving dynamics in the digital asset investment landscape. As lower-fee spot Bitcoin ETFs gain popularity, they are siphoning off capital from existing products, particularly those deemed less competitive.

This shift in investor preference is evident in the decreasing total assets of GBTC, which is now trailing IBIT and FBTC. Moreover, the gap is widening further as capital flows towards newer, potentially lower-cost or more efficient vehicles.

The growing disparity in favor of IBIT and FBTC showcases the market's prioritization of lower-fee structures and emerging technologies within the Bitcoin ETF market.

Other Bitcoin ETFs Show Mixed Results As Trading Volumes Decline

Among other Bitcoin ETFs, Ark's Innovation ETF (ARKB) increased to $4.99 billion in assets, benefiting from positive price movements and limited inflows.

Franklin's Bitcoin ETF (EZBC) led daily price action with a 0.16% gain on May 9, followed by ARKB and Bincrafters' Bitcoin ETF (BRRR) with 0.14% rises.

But Bitwise's Bitcoin ETF (BITB) recorded outflows of $14.59 million, indicating diverging sentiment towards the product.

Despite the decline in overall inflow, daily flows remained positive, with $321.46 million recorded on May 9 across all ETFs.

Aggregate daily trading volume reached $2.67 billion, showing continued but reduced activity in the market.

All funds except Hashdex's DEFI posted price gains on the day, supported by Bitcoin's price performance and limited selling pressure.

Total net assets across all Bitcoin ETFs reached $121.19 billion on May 9, up from $113.15 billion on May 2.

About 34% of this came from cumulative inflows since the beginning of the year, demonstrating that new capital is fueling asset growth in the Bitcoin ETF market.

As the asset class matures and becomes mainstream, we can expect to see even more capital flowing into this space.