For the fifth consecutive day, outflows from Grayscale’s Bitcoin fund have decelerated, while Fidelity’s spot Bitcoin ETF witnessed robust inflows, reaching $208 million on January 29.
This marked a notable shift as Fidelity’s ETF outpaced Grayscale Bitcoin Trust (GBTC), which experienced $192 million in outflows on the same day. GBTC’s recent outflows represent a nearly 25% decrease from $255 million on January 26 and a substantial 70% drop from its peak daily outflows of $641 million on January 22.
Analysts are monitoring GBTC closely for signs of slowed outflows, with JPMorgan suggesting that the downward price pressure caused by outflows should be mostly in the past. In contrast, data from January 29 indicates that the nine new U.S. spot Bitcoin ETFs collectively achieved a volume of $994.1 million, nearly double that of GBTC, which posted $570 million in volume. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC contributed significant volumes, with $460.9 million and $315.4 million, respectively, making up 78% of the combined volume of the new ETFs.
The intensely competitive market for spot Bitcoin ETFs has prompted issuers to reduce fees, with Invesco and Galaxy Asset Management recently lowering the expense ratio for their joint ETF, Invesco Galaxy Bitcoin ETF (BTCO), from 0.39% to 0.25%.
This reduction aligns the fee with other major players like BlackRock, Fidelity, Valkyrie, and VanEck. BTCO will have zero fees for the initial six months or until reaching $5 billion in assets, after which the revised fee will be implemented.
The fee competition in the U.S. may have influenced Europe’s ETF market, leading to fee cuts by Invesco, WisdomTree, and CoinShares in a bid to attract investors.