According to digital asset data provider SoSoValue, Bitcoin spot exchange-traded-funds (ETFs) attracted healthy inflows on February 29th totaling $92.38 million. However, the Grayscale Bitcoin Trust (GBTC) saw significant outflows of $598 million for the day.
The growing divergence highlights institutional investors’ preferences shifting towards spot Bitcoin ETFs instead of trusts like GBTC which come with a premium price.
On the flip side, BlackRock’s spot Bitcoin ETF saw inflows of $603 million on Friday, marking another solid day of investment. SoSoValue reports that total cumulative net inflows into Bitcoin spot ETFs have now reached $7.49 billion since launches started last year.
The data indicates that regulated funds providing direct exposure to Bitcoin, without the governance issues and premiums associated with trusts, are increasingly attractive to institutional dollars.
Meanwhile, the huge single-day outflows seen at the Grayscale GBTC on February 29th suggest investors are turning away from the fund in favor of better-structured products. GBTC has been contending with falling assets under management and a shrinking premium, now trading at a nearly 10% discount versus a 40% premium at its peak.
With the first Bitcoin ETFs in the U.S. just receiving approval in late 2022, the products appear to be succeeding in directing institutional investment dollars towards direct Bitcoin exposure rather than through intermediaries like Grayscale. As the number of spot ETFs continues growing, this trend is expected to accelerate.