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Spot Bitcoin ETF: definition
A spot Bitcoin ETF is an exchange-traded fund that actually holds bitcoins. Money flowing in and out forces the fund to buy or sell BTC.
Definition
Since January 2024, US spot Bitcoin ETFs (BlackRock's IBIT, Fidelity's FBTC, Grayscale's GBTC…) let people invest in Bitcoin through a regular brokerage account. The fund holds the corresponding bitcoins.
Net flows
When investors buy more shares than they sell, the ETF creates shares and buys Bitcoin: that's a net inflow. The opposite is a net outflow. These daily flows measure institutional demand.
How to use them
- A series of net inflows supports the price.
- Heavy outflows during a rally signal that institutions aren't following.
- IBIT's traded volume during the session gives a hint before the flows are published.
Frequently asked questions
When are ETF flows published?
After the Wall Street close (4 pm New York time), then consolidated in the evening or the next morning.
Are there spot Ethereum ETFs?
Yes, since July 2024 in the United States (BlackRock's ETHA, Fidelity's FETH…). Their flows are tracked the same way.