Prominent Crypto Analyst Weighs Bitcoin ETFs Winners And Losers

According to a top crypto trader, Daan Crypto Trades on X, it is quite obvious that BlackRock’s IBIT and Fidelity’s Bitcoin ETFs are doing well.

#Bitcoin ETF Cumulative Flow 👇

It's clear that Blackrock's $IBIT and Fidelity's $FBTC are the real winners here, contributing to about ~75% of all the net inflows together.

Grayscale's $GBTC has obviously been the big loser, losing almost half of its $BTC holdings since. pic.twitter.com/aK1veKSXuk

— Daan Crypto Trades (@DaanCrypto) April 1, 2024

He also revealed that these two ETF products contribute approximately 75% of the new inflows to the total Bitcoin ETF volume.

Top Trader Reveals Bitcoin ETF Winners and Losers

While Daan Crypto Trades applauded the achievements of IBIT and FBTC for contributing around 75% of all the inflows in ETFs, he noted that Grayscale’s GBTC suffered the largest losses. 

According to Daan, GBTC has lost almost half of its BTC investments since its introduction in the Bitcoin ETF market.

Even though some ETFs, such as GBTC, backpedaled, an update on March 13 by analyst Willy Woo revealed that the daily inflows of capital stored by the Bitcoin Network rose to $2 billion on the daily timeframe. 

According to Woo, this is the level that Bitcoin inflows hit during the last bull run and will likely continue to increase. 

Also, Woo believes that the spot ETFs are responsible for the increase in Bitcoin inflows.

Additionally, he noted that the inflows are measured on-chain, so it includes all investors and is at least 90% accurate. So, from his analysis, the ETFs account for around 30% of the total inflows to Bitcoin. 

Responding to Woo’s market analyst, another investor, Ben Herring, believes that the percentage of inflows is at least 50% based on the improvement in the price of Bitcoin.  

Moreover, Bitcoin ETFs have had a much-improved performance in the last 24 hours. Today, April 1, IBIT records the highest 24 volumes at $1.18 billion, while GBTC is second at $752.23 million. 

Also, FBTC is in third place with a 24-hour volume of $659.88 million, showing massive interest from investors. 

James Seyffart Gives Important BTC ETF Update

According to financial analyst James Seyffart, a big shakeup is coming for some ETFs listed on Fidelity’s platform.

Also, the analyst revealed that under the new plan, which will become effective by June 3, investors will face a $100 service charge when they place buy orders for a group of ETFs.

Big shakeup coming for some ETFs listed on Fidelity’s platform. Story from @emily_graffeo & @kgreifeld.

“Under the plan, which will come into force on June 3, investors will face a $100 servicing charge when they place buy orders on a cohort of ETFs” https://t.co/Ti7xdrCZLb

— James Seyffart (@JSeyff) March 29, 2024

Further, Bloomberg reported that Fidelity Investments will impose a new fee on the ETF offered by nine firms, including Simplify Asset Management Inc. and AXS Investments. 

Based on the Bloomberg report, this new fee structure covers the cost of listing their products on Fidelity’s platform. 

Also, the new fee applies to small minority firms not part of Fidelity’s maintenance arrangement. Other companies included on this list for the $100 fee include Day Hagan, Sterling Capital, Cambiar, Adaptive, Rayliant, and Running Oak.    

However, this list will be updated periodically before the June 3 implementation date. According to a Fidelity spokesperson, the support fees help to maintain the technology and service operations for a secure and positive experience for investors. 

This arrangement is not new for Fidelity, as investment firms often pay a fee as operational support to the platform. 

Notably, in 2019, Fidelity slashed their trading commissions to zero for online buying and selling stocks, ETFs, and options. These new fees could be a safety measure for possible outflows from ETFs to protect profitability.