A lot has been happening in the spot Bitcoin ETF market within a week of its launch. Within the initial three days of going live on Wall Street, the Bitcoin ETFs clocked more than $10 billion in trading volumes.

Bitwise Records $68 Million In Inflows

In a recent statement, Bitwise CEO Hunter Horsley announced that the Bitwise Bitcoin ETF ($BITB) has experienced another influx of $68 million, resulting in a total of $370 million in inflows over a span of four days. Horsley expressed gratitude to investors for placing their trust in Bitwise to manage their assets within the cryptocurrency space.

Today the Bitwise Bitcoin ETF ($BITB) took in another $68,000,000 and bought Bitcoin.

Now $370M total inflows over 4 days.

Grateful to investors for entrusting us to steward their assets in the space.

[View BITB disclosures & prospectus: https://t.co/pAJUG8aACE]

— Hunter Horsley (@HHorsley) January 18, 2024

The good thing about Bitwise is that it buys all the Bitcoins in the underlying spot ETFs using the BRRNY vwap. As reported by CC15Capital, the Bitwise Bitcoin Spot ETF (BITB) acquired a net total of 1,598 Bitcoins in its latest trading session. As of January 17, the BITB ETF held a cumulative sum of 8,309 Bitcoins, valued at approximately $358 million. On the most recent trading day, BITB witnessed the exchange of 2.9 million shares, amounting to approximately $70 million.

GBTC Records Huge Outflows Leading to Inflows In Bitcoin ETFs

The Grayscale Bitcoin Trust (GBTC) has been seeing strong outflows following the launch of the spot Bitcoin ETFs last week. The ETFs offer a more regulated and secure way of holding ETFs. Market analysts believe that most of the outflows from GBTC have led to strong inflows in the ETFs.

Bloomberg strategist James Seyffart has noted a significant shift in funds from Grayscale Bitcoin Trust ($GBTC) to competing ETFs, emphasizing that this trend may not be receiving adequate attention. Seyffart estimates a substantial outflow of approximately $594 million from $GBTC, totaling $1.173 billion in outflows.

Assuming the data is correct it backs up something i wrote about yesterday. A lot of these $GBTC outflows are likely finding a home in competing ETFs https://t.co/Bj8HZAOkXa pic.twitter.com/qcVBnbdnX5

— James Seyffart (@JSeyff) January 17, 2024

While several other BTC ETFs experienced inflows, the analyst questions whether these inflows are sufficient to counterbalance the sizable outflow from $GBTC. Seyffart highlights discussions with informed sources suggesting discrepancies in on-chain coverage, particularly related to $GBTC.

Amid all these developments, the Bitcoin price has remained steady trading around $46,500 levels with a market cap of $835 billion. Earlier this week on Tuesday, January 16, the Bitcoin network recorded the largest Bitcoin transaction with nearly 43,000 Bitcoin moved in just an hour.

🐳💸 The largest #Bitcoin transaction thus far in 2024, worth $665.3M, occurred ~6 hours ago. Between 3pm and 4pm UTC, this transaction contributed to a total of 42,870 $BTC moved in 1 hour, the highest level of hourly movement in nearly 6 months. https://t.co/LigU0fVgYm pic.twitter.com/m2YPbgy7EG

— Santiment (@santimentfeed) January 16, 2024

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.