Bitcoin (BTC) ETF Flows in 2024

Introduction

In 2024, Bitcoin ETF flows have garnered significant attention from institutional investors and traders, particularly in light of the historic launch of the first spot Bitcoin ETFs earlier this year. This development marked an important milestone in the cryptocurrency market, opening new avenues for investment and driving substantial interest in Bitcoin ETFs. As you can see below in our BTC ETF Flow tracker from Amberlens, the amount of money in and out across all funds has been quite a wild ride.

As Bitcoin investors, new and old, navigate through the year, understanding the movement of funds into and out of these ETFs is crucial for gauging market sentiment and investor confidence. In this post, we will explore the critical trends in Bitcoin ETF flows, compare top entities' standings from the first to the second quarter, and analyze net flows across the year. Below is another example of these flows tracking Bitcoin.

These insights will clarify how institutional players position themselves in this evolving market, offering valuable guidance for informed investment decisions.

The first half of 2024 witnessed a substantial shift in Bitcoin ETF flows, driven primarily by the historic launch of spot Bitcoin ETFs in January. 

BlackRock's iShares Bitcoin Trust (IBIT) emerged as the frontrunner, attracting a historic $13.9 billion inflows during Q1, rapidly establishing itself as one of the largest spot Bitcoin ETFs. 

Fidelity's Wise Origin Bitcoin Trust (FBTC) also saw substantial interest, with inflows reaching $7.5 billion and assets under management (AUM) growing to $9.2 billion by April. In contrast, Grayscale's Bitcoin Trust (GBTC), a long-standing player in the market, faced significant outflows of $14.7 billion as investors shifted their preference toward the newly launched spot ETFs due to their lower fees and more attractive structure. 

Other notable ETFs, such as the ARK 21 Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB), recorded inflows of $2.2 billion and $1.8 billion, respectively, reflecting the broad interest in these new investment vehicles.

The momentum slowed in Q2 (April-June 2024), with total spot Bitcoin ETF inflows decreasing to $6 billion. 

BlackRock's IBIT continued to lead, albeit with a reduced pace of new investments, as prominent institutional investors like Goldman Sachs and Morgan Stanley and hedge funds such as Renaissance Technologies increased their holdings. Fidelity's FBTC remained a significant player, but its inflows did not match the robust figures from Q1. 

Meanwhile, GBTC continued to experience outflows, though the rate of decline moderated, as Grayscale sought to regain market share with its pending Grayscale Bitcoin Mini Trust. The market environment also shifted, with leveraged and futures-based ETFs seeing significant outflows, likely driven by a 12.8% drop in Bitcoin's price during Q2 and investors reassessing their strategies in a more volatile market. 

This shift underscores the growing preference for lower-fee, spot-based ETFs, particularly those offered by industry giants BlackRock and Fidelity, while traditional products like GBTC continued to struggle amid heightened competition.

The net flows of Bitcoin ETFs in 2024 have been marked by dynamic shifts, reflecting both the enthusiasm and challenges within the market. In Q1, launching the first Bitcoin spot ETFs drove substantial inflows totaling approximately $12.1 billion. See the full year below.

BlackRock's iShares Bitcoin Trust (IBIT) stood out as the dominant force, attracting a record-breaking $13.9 billion and establishing itself as the fastest-growing ETF in history. Fidelity's Wise Origin Bitcoin Trust (FBTC) also performed exceptionally well, garnering $7.5 billion in inflows, making it the second-largest spot Bitcoin ETF by inflows. 

However, this surge in new spot ETFs came at the expense of Grayscale's Bitcoin Trust (GBTC), which saw $14.7 billion in outflows as investors flocked to the lower fees and more transparent structure offered by the newly launched products.

Moving into Q2, the pace of inflows into Bitcoin ETFs slowed considerably, with total inflows reducing to $2.5 billion. Despite the deceleration, the cumulative assets under management (AUM) across various spot Bitcoin ETFs reached $52.1 billion by the end of June. 

BlackRock's IBIT and Fidelity's FBTC continued to lead, although at a diminished rate compared to Q1, reflecting a more cautious market sentiment. The overall decline in Bitcoin prices during Q2, driven by significant sell-offs by large holders, further tempered the enthusiasm for Bitcoin ETFs. 

This market environment highlighted the volatility and sensitivity of Bitcoin ETFs to broader market trends, underscoring the need for asset managers and investors to position themselves strategically in this rapidly evolving sector.

BTC ETF Flows in AmberLens

AmberLens offers comprehensive dashboards featuring BTC ETF Flow data, providing users with intuitive and interactive visualizations. By leveraging AmberLens, users can easily analyze trends, monitor market movements, and gain actionable insights through a user-friendly interface designed to streamline data exploration and decision-making processes as the world of Bitcoin only continues to grow.