New Bitcoin ETFs Accumulate Over 95K BTC
The recently approved spot Bitcoin exchange-traded funds (ETFs) have seen significant growth in their first six days of trading. Data from Bloomberg’s senior ETF analyst, Eric Balchunas, reveals that the “Newborn Nine” ETFs have accumulated over 95,297 BTC since January 11, 2024. When combined with the assets of the Grayscale Bitcoin Trust (GBTC), the total BTC held by these ETFs reaches 647,374.
Breakdown of BTC Holdings
The iShares Bitcoin Trust (IBIT) by BlackRock currently leads the Newborn Nine with 33,706 BTC. Fidelity’s Wise Original Bitcoin Fund (FBTC) follows closely with 30,384 BTC. Bitwise’s BITB holds 10,235 BTC, while Ark Invest/21 Shares’s ARKB and Invesco’s BTCO have amassed 9,134 BTC and 6,192 BTC respectively. The VanEck Bitcoin Trust (HODL), Valkyrie Bitcoin Fund (BRRR), and Franklin Templeton’s EZBC hold lower figures ranging from 1,169 to 2,566 BTC. The WisdomTree Bitcoin Fund (BTCW) has the smallest assets at 182 BTC.
New ETFs Outperform GBTC
Despite seeing outflows of $590 million on Friday, GBTC was overshadowed by the Newborn Nine. Balchunas noted that BlackRock’s IBIT, Fidelity’s FBTC, BTCO, and HODL had their “best hauls to date.” The net flows for the Newborn Nine amount to approximately $1.2 billion, pushing their AUM to nearly $4 billion. In comparison, GBTC’s AUM stands at $2.8 billion, accounting for a 14% share.
Minor Impact on GBTC Outflows
Balchunas speculates that only a small portion of the GBTC outflows will be allocated to the new ETFs. He believes that most of the outflows were from FTX, the bankrupt crypto exchange, and traders who took advantage of discounts. The proportional flows in relation to the size of the firm indicate that the outflows were due to other factors such as reach, distribution, and hustle.
Hot Take: Growing Interest in Bitcoin ETFs
The rapid accumulation of BTC by the recently approved Bitcoin ETFs reflects the growing interest in these investment vehicles. With significant inflows and impressive asset holdings, these ETFs are becoming a popular choice for investors looking to gain exposure to Bitcoin. As more institutional players enter the market through these ETFs, it is expected that their AUM will continue to grow, potentially further impacting traditional Bitcoin investment products like GBTC. The rise of Bitcoin ETFs marks a significant milestone in the adoption of cryptocurrencies within mainstream finance.
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