Bitcoin ETFs are finally a reality after much anticipation. Since gaining approval on January 10, the financial instrument has been making waves in the TradFi industry, drawing in a surge of investors looking to gain exposure to the crypto market.
With no signs of slowing down, Bitcoin ETFs maintain their grip on the financial world as they accumulate billions in assets in their first week of trading.
Bitcoin ETF Issuers Fill Their Pockets
TradFi demand for Bitcoin ETFs continues to grow even in the face of the crypto market receiving a slight dent in its bullish structure. After six days of trading, nine out of the eleven approved spot Bitcoin ETF issuers have collectively accumulated over 95,000 bitcoins, worth approximately $4 billion.
Leading the pack among the nine ETFs are BlackRock and Fidelity, each attracting over $1.2 billion in inflows. While Fidelity experienced slightly higher capital inflows, BlackRock maintained a higher total assets under management, with $1.4 billion compared to Fidelity’s nearly $1.3 billion.
LATEST: Despite $GBTC seeing a -$590m outflow gash friday, The Nine overwhelmed it w/ +$623m (3rd best day), $IBIT & $FBTC both >$200m while $BTCO & $HODL had their best hauls to date. TOT NET FLOWS stand at +$1.2b as Nine's aum hit $4b vs GBTC's -$2.8b, upping aum share to 14%. pic.twitter.com/nB57H8Ro8s
— Eric Balchunas (@EricBalchunas) January 20, 2024
Early figures from senior Bloomberg analyst Eric Balchunas reveal that the capital inflow into these nine new ETFs surpasses the outflows from the Grayscale Bitcoin Trust. During the same six-day period, Grayscale’s assets under management witnessed a decline of $2.8 billion.
Nevertheless, Friday marked one of the best days in terms of inflows since the approval, with most issuers collectively attracting at least $600 million. While other funds made gains, Grayscale Bitcoin Trust bore the brunt of outflows, with over $590 million flowing out, bringing the total net inflow to a modest $33.1 million on the sixth day of trading.
On the Flipside
Crypto analysts suggest that a Bitcoin supply crunch is on the horizon because of the success of the spot.
Bitcoin ETFs are the second-largest commodity ETF, trailing only behind Silver ETFs.
Why This Matters
Bitcoin ETFs have taken the financial world by storm. The surge in funds flowing into the financial product, coupled with the increasing crypto assets managed by asset managers, holds the potential to propel the industry to unprecedented heights and reshape investors’ perceptions of the crypto space.
