Inflows into the nine recently launched exchange-traded funds (ETFs) tied to bitcoin have resumed their upward trajectory this week after the cryptocurrency’s price bounced back from its dip last week.
“The resumption in bitcoin’s strong performance is sparking renewed interest in the ETFs,” said Todd Rosenbluth, head of research at VettaFi, an analysis firm.
The nine funds that made their debut in January pulled in nearly $1 billion in assets in the first two days of this week, according to data from BitMEX Research. Wednesday’s flows data will be available on Thursday morning.
But the leadership has shifted from BlackRock’s 
BLK iShares Bitcoin Trust 
IBIT to the Fidelity Wise Origin Bitcoin Fund 
FBTC. The latter attracted $540.9 million in assets Monday and Tuesday, more than double the $197.7 million BlackRock’s fund drew in the same period, BitMEX data showed.
The one fund that continues to buck this trend is the Grayscale Bitcoin Trust (GBTC.O), which existed as a publicly traded trust before it converted into an ETF on the same day the other nine ETFs launched. It has seen steady outflows since then, regardless of bitcoin’s price movements. In the first two days of this week, those outflows reached $562.4 million.
“At the moment, the numbers are all skewed by Grayscale,” said David Mercer, CEO of LMAX Group, an institutional cryptocurrency exchange.
However large these flows may be for the ETF market, they’re “a rounding error” when compared to the total market capitalization of bitcoin itself, Mercer added.
Still, he noted, ETF flows seemed to be dictating bitcoin’s price at present. “One thing’s for sure: the bitcoin price couldn’t rally when you saw outflows in the ETFs,” Mercer said.
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