From Morningstar: 2024-05-10 04:53:00

Investors are flocking to the newly-launched spot bitcoin ETFs, with $12.1 billion poured into them since January, mostly going to BlackRock’s iShares and Fidelity. Grayscale’s Bitcoin Trust, the previous favorite, saw $17.2 billion leaving the holdings. Overall, the ETFs have had a successful launch, despite price volatility. Source: Morningstar Direct.

The approval of spot bitcoin ETFs by the SEC in January marked a significant shift after years of rejection. Previously, investors could only access bitcoin through Grayscale’s trust or futures-based ETFs like ProShares. Grayscale’s lawsuit against the SEC paved the way for the approval of spot bitcoin ETFs from various firms. Source: Morningstar Direct.

While all spot bitcoin ETFs have similar performance, the iShares and Fidelity ETFs have attracted significant inflows, totaling $15.6 billion and $8.2 billion, respectively. Smaller players like ARK and Bitwise have also seen success, pulling in billions of dollars. Grayscale, however, has faced significant outflows due to higher fees. Source: Morningstar Direct.

Grayscale has lost $17.2 billion in assets as investors withdrew funds, despite lowering fees. Other ETFs temporarily cut or eliminated fees to attract investors during the launch period. Grayscale aimed to maintain its lucrative fee structure but underestimated the appeal of lower-cost alternatives offered by competitors. Source: Morningstar Direct.



Read more at Morningstar: Winners and Losers in the US Spot Bitcoin ETF Race