Bitwise Outperforms as Sole Bitcoin ETF with Inflow

Bitwise stands out as the only Bitcoin ETF to have achieved recent inflows, contrasting with other funds that either saw no new investments or experienced withdrawals. On May 8, Bitwise’s Bitcoin ETF (BITB) attracted $12 million, an anomaly in a market where other major ETF providers like BlackRock, Fidelity, and Grayscale saw no new money coming in.

The early enthusiasm for Bitcoin ETFs, evidenced by over $11.77 billion in inflows following their regulatory approval in January, has cooled significantly. Notably, BlackRock’s ETF was among the top five by inflows, accumulating $3.1 billion. However, expectations for a significant market expansion have waned, despite analysts at JMP Securities predicting a potential surge to $220 billion in inflows that could quadruple Bitcoin’s price to $288,000.

The decline began in earnest in March, culminating in BlackRock’s IBIT experiencing a day without any inflows at all on April 24, ending a 71-day streak of positive inflows. Market analyst Rachael Lucas remarked that days without inflows are typical and reflect the wider market and geopolitical conditions.

Grayscale’s GBTC, after shifting to a spot Bitcoin ETF, has seen significant outflows, largely attributed to its high fees. After a lengthy period of losses, it recently managed a modest inflow of $4 million. Meanwhile, Grayscale's total Bitcoin holdings have drastically reduced from 619,220 BTC to 292,217 BTC, valued at about $18.4 billion.

Despite some gains by Fidelity’s Bitcoin ETF and others, the outlook for Bitcoin ETFs is fraught with challenges. As the market evolves, these ETFs must navigate fluctuating conditions and regulatory hurdles while striving to maintain investor interest and confidence.