Interest in Spot Bitcoin ETFs Surges After Launch
The market-leading spot Bitcoin ETFs launched by BlackRock and Fidelity have seen a significant increase in interest just one month after their launch. According to Bloomberg’s Senior ETF analyst Eric Balchunas, the two ETFs have attracted over $6 billion in funds since January 10, surpassing more established ETFs like Invesco’s QQQ.
Balchunas also highlighted that money has been consistently pouring into the Bitcoin funds throughout the month, indicating widespread investor participation. Bitwise and Ark Invest’s Spot Bitcoin ETFs also made the list, ranking 21st and 22nd, respectively.
Grayscale’s GBTC Sets the Stage for ETF Success
While Grayscale’s GBTC, with $21 billion AUM, did not make the list due to its long-established presence in the market, it played a crucial role in paving the way for other Bitcoin ETFs. Grayscale initially launched its Bitcoin fund in 2013 but transitioned to publicly traded shares under the ticker GBTC in 2015.
Since the approval of the new ETFs by the US Securities and Exchange Commission, Grayscale has experienced outflows of $6 billion. This is because the fund previously traded at a discount to its underlying asset due to its closed-end structure. However, after converting to an ETF, many investors sold their positions at a profit.
Despite this, BlackRock and Fidelity’s successful launches owe their popularity to Grayscale’s efforts in pushing for a Bitcoin ETF through legal battles and achieving a landmark victory in August 2023.
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