Attract Investor Interest, Fresh Funds Of IDR 4 Trillion Enter Bitcoin Spot ETF

ETF Bitcoin spot attracts investors' attention. (Photo; Doc. BitcoinTalk)

JAKARTA - Bitcoin's ETF, or exchange-traded funds that track the Bitcoin price, is one of the most popular investment instruments in the United States market. Since earlier this month, a number of Bitcoin ETFs have obtained approval from the Securities and Exchange Commission (SEC), US capital market authorities, for trading on stock exchanges. This shows the high demand from investors who want to gain exposure to the world's largest crypto assets.

According to data from BitMEX Research, the research division of the BitMEX crypto exchange, all Bitcoin spot ETFs, namely ETFs holding Bitcoin physically, experienced a total net inflow of $255 million (around Rp. 4 trillion) between January 11, 2024 and January 29, 2024, 12 days after SEC approval. On Monday, January 30, the ETF Bitcoin spot recorded a net inflow of $406 million (around Rp. 6.4 trillion), the strongest day since its launch.

"All data is out. A strong day, with a total net entry flow of $255 million overall," wrote the BitMEX Research statement, January 30, 2024.

Meanwhile, Grayscale Bitcoin Trust (GBTC), an investment product that was previously a major choice for investors who want to invest in Bitcoin through stock exchanges, continues to experience massive sales.

Since the spot's Bitcoin ETF received approval from the SEC, GBTC has begun to lose its appeal as an alternative investment in Bitcoin. Investors are starting to withdraw their funds from GBTC and move them to the Bitcoin ETF, which offers lower costs, higher liquidity, and more accurate prices.

According to Bloomberg analyst James Seyffart, GBTC experienced an outflow of $3.9 billion (approximately IDR 61.6 trillion) last week. This week, investors continue to sell GBTC shares, with a total of 120,500 Bitcoins (approximately IDR 1.907 trillion) removed from trust.

On Monday, data from SoSoValue, a site providing information about the market value and flow of investment products, showed that GBTC experienced a net outflow of $191 million (approximately IDR 3 trillion) in one day, compared to $515 million (approximately IDR 8.1 trillion) on January 24, signaling a significant slowdown in sales rate. On the same day, BitMEX Research stated that GBTC experienced an outflow of $192 million (approximately IDR 3 trillion).

However, these figures are relatively small compared to the asset value under the management (AUM) of GBTC, which still reaches around $22.4 billion (approximately IDR 338.5 trillion). GBTC is still the world's largest Bitcoin investment product, with a market share of about 70% of the total AUM of Bitcoin investment products, according to data from CryptoCompare, a site that provides data and crypto market analysis.