Spot Bitcoin ETFs Accumulate 10,667 BTC in Fifth-Day Trading Surge
Spot Bitcoin exchange-traded fund issuers have added 10,667 Bitcoin (BTC) to their holdings on the fifth trading day, coinciding with increased trading volumes. The data shows that various funds participating in the recent ETF approval acquired around $440 million worth of Bitcoin. BlackRock’s ETF made the largest purchase, acquiring 8,700 BTC valued at nearly $358 million. In total, excluding Grayscale, nine ETFs have accumulated close to 68,500 BTC since their inception, now valued at around $2.8 billion.
‘Newborn Nine’ ETFs Attracting Investment Away from Grayscale Bitcoin Trust
Bloomberg ETF analyst Eric Balchunas has referred to the newly approved Bitcoin ETFs as the ‘Newborn Nine,’ which are gaining investment traction at the expense of the first-mover Grayscale Bitcoin Trust (GBTC). These funds have experienced a 34% increase in daily trading volume on the fifth day, defying the typical post-launch pattern of decreasing volumes. However, it is important to note that there may be a delay in reporting Bitcoin purchases by ETF managers due to transaction settlement periods, which could affect the immediacy of data.
BlackRock and Fidelity’s Bitcoin ETFs Show Strong Investor Interest
Both BlackRock and Fidelity’s Bitcoin ETFs have garnered significant investor interest, surpassing $1 billion in assets under management each as of January 18. Rachel Aguirre, Head of U.S. iShares Product at BlackRock, highlighted the diverse engagement from investors and their readiness to invest right from the beginning. Balchunas also noted that these two ETFs are among the top five U.S. ETFs for weekly capital inflows, closely following the Vanguard 500 Index Fund ETF.
ETF Popularity Rises as Cryptocurrency Market Capitalization Drops
The growing popularity of ETFs in the cryptocurrency space coincides with a decline in overall cryptocurrency market capitalization and an increase in ETF inflows. This trend indicates a preference for ETFs as a preferred investment vehicle. Currently, Bitcoin’s price has decreased by 3.6% over the past 24 hours, trading at $41,245, and has experienced a 10% fall over the week.
Hot Take: Bitcoin ETFs Gain Momentum as Grayscale Bitcoin Trust Faces Competition
The recent surge in spot Bitcoin exchange-traded funds (ETFs) demonstrates growing investor interest in this investment vehicle. With significant acquisitions of Bitcoin by various ETFs, competition is intensifying for Grayscale Bitcoin Trust (GBTC), which has seen substantial outflows since transitioning to a spot ETF. The rise of the ‘Newborn Nine’ ETFs and their increasing trading volumes indicate a shift in investor preferences towards these newly approved offerings. As more institutional players enter the market through ETFs, the landscape of cryptocurrency investments continues to evolve.
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