Bitcoin ETFs Gain Impressive Momentum
In just six days of trading, the recently approved spot Bitcoin exchange-traded funds (ETFs) have collectively accumulated an impressive 95,000 BTC, with total assets under management (AUM) inching close to the $4 billion mark. The inflow into these newly launched ETFs has now exceeded the outflows from the Grayscale Bitcoin Trust (GBTC), according to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence. Total net flows now stand at +$1.2 billion.
GBTC Faces Outflows
GBTC, which operates with notably higher fees than the other ETFs in the sector, saw its assets under management (AUM) fall by around $2.8 billion within the first six days of trading. This has caused concern among many in the Bitcoin community. JPMorgan analysts had previously predicted these outflows unless GBTC’s fees are lowered.
Fidelity and BlackRock Leading the Pack
Leading the pack among the ETFs are Fidelity’s (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT), amassing inflows of $1.28 and $1.23 billion, respectively. Fidelity is known for being more crypto-friendly and has argued that “Bitcoin is better than gold” for investment portfolios.
Invesco and VanEck Show Growth
Invesco’s ETF secured the third spot and experienced consistent growth, achieving its best day for inflows on January 19 with over $63 million. VanEck’s ETF also celebrated its best day for inflows on the same day, propelling its total AUM to over $100 million.
Hot Take: Bitcoin ETFs Gain Momentum and Outperform GBTC
The newly approved Bitcoin exchange-traded funds (ETFs) have gained significant momentum in just six days of trading. With a collective accumulation of 95,000 BTC and total assets under management (AUM) nearing $4 billion, these ETFs have surpassed the outflows from the Grayscale Bitcoin Trust (GBTC). Fidelity’s FBTC and BlackRock’s IBIT are leading the pack with substantial inflows, while Invesco and VanEck also show promising growth. The success of these ETFs highlights the growing interest in Bitcoin as an investment asset. As more investors embrace these ETFs, the cryptocurrency market is likely to witness increased liquidity and further mainstream adoption.
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