The newly introduced Bitcoin exchange-traded investment funds, known as spot Bitcoin ETFs, have been making waves in the world of finance and cryptocurrencies with their approval in January 2024.
In just 20 trading days, these funds reached an impressive US$10 billion in assets under management (AUM). This news highlights growing interest and renewed confidence in Bitcoin’s long-term potential as an investment asset.
According to research carried out by BitMEX Research, the nine Bitcoin ETFs accumulated a total of US$2.7 billion in net flows as of January 9th, with BlackRock’s iShares Bitcoin Trust in the lead, managing a Bitcoin value that reaches the US$4 billion. Not far behind, we find Fidelity’s Wise Origin Bitcoin Fund, which holds over $3.4 billion in Bitcoin. Additionally, the ARK 21Shares Bitcoin ETF also celebrated a milestone, reaching $1 billion worth of Bitcoin under its management.
Bitcoin ETF Flow – 9th Feb
All data out. Strong day at $541.5m of net inflow
Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3
— BitMEX Research (@BitMEXResearch) February 10, 2024
Meanwhile, the Grayscale Bitcoin Trust (GBTC) has seen outflows of $6.3 billion over the past 30 days, marking a challenging period for the fund. However, on February 9, the fund saw its lowest daily volume of capital withdrawals since its conversion, totaling $51.8 million. Bloomberg analyst Eric Balchunas commented on the resilience of the new ETFs, saying, “I thought the Nine would get a little weaker as GBTC outflows slowed, but they are getting stronger.”
The expectation is that flows into Bitcoin ETFs will continue to grow in the coming months as more companies do their due diligence with these new investment vehicles. Bitcoin has also shown strength in the market, holding above key technical indicators in January, including its 200-day moving average and network average. ARK Invest maintains a bullish view, suggesting that Bitcoin is positioning itself as a replacement for gold as a risk-free asset.
At the time of publication, the price of BTC was quoted at US$48,073.05, up 1.6% in the last 24 hours.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.