$1.2 Billion Flows Into Spot Bitcoin ETFs in Less Than a Week
The research arm of BitMEX, a cryptocurrency exchange, has reported that over $1.2 billion has been invested in spot Bitcoin exchange-traded funds (ETFs) within days of their launch. The majority of the funding went to BlackRock’s ETF.
BlackRock’s ETF Debut a Success
According to Arthur Cheong, founder and CEO of DeFiance Capital, BlackRock’s spot Bitcoin ETF achieved $1 billion in assets under management (AUM) in less than five trading days. He considers it a very successful launch.
Grayscale Experiences Outflows
BitMEX also reveals that Grayscale has seen outflows totaling $1.6 billion after its Bitcoin Trust (GBTC) shares were converted into an ETF. This may be due to investors wanting to switch to lower-fee ETFs.
SEC Approval Creates Monetary Pipeline
The US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10th, establishing a direct connection between Wall Street and Bitcoin.
Bitcoin Price Update
At the time of writing, Bitcoin is trading at $41,223, experiencing a decrease of over 3% in the last 24 hours.
Hot Take: Spot Bitcoin ETFs Attract Massive Investments Following Approval
In just a few days since their launch, spot Bitcoin ETFs have seen an influx of over $1.2 billion in investments. The success of BlackRock’s ETF debut, which reached $1 billion AUM in less than five trading days, highlights the demand for these new investment products. However, Grayscale has experienced significant outflows after converting its GBTC shares into an ETF. The approval of 11 spot Bitcoin ETFs by the SEC has opened up a monetary pipeline between Wall Street and Bitcoin, solidifying the cryptocurrency’s integration into traditional finance. Despite recent price fluctuations, the strong investor interest in spot Bitcoin ETFs indicates a growing acceptance of Bitcoin as a legitimate asset class.
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