The Rise of Spot Bitcoin ETFs
The nine new spot Bitcoin exchange-traded funds (ETFs) have gathered over 150,000 BTC (worth $6.5 billion) in assets under management, excluding Grayscale’s converted GBTC fund, according to data from K33 Research.
The Nine New ETFs
The nine new ETFs are BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW).
Increasing Holdings
The total holdings of the new ETFs reached 150,846 BTC as of Monday, up from 108,908 BTC on Jan. 22 and 47,652 BTC on Jan. 16. This excludes GBTC, which has seen a decline in its assets under management by 126,482 BTC ($5.5 billion) since the launch of the ETFs on Jan. 11, according to BitMEX Research.
Declining Market Share for GBTC
GBTC’s spot Bitcoin ETF market share by trading volume has significantly decreased. It dropped from a peak of 63.9% on Jan. 17 to 36.4% over the last few days alone, according to The Block’s data dashboard. The cumulative volume for the ETFs now stands at over $25 billion.
Net Inflows Reach $1 Billion
Total net inflows for spot Bitcoin ETFs exceeded $1 billion yesterday after four days of net outflows last week. The nine new ETFs received $6.25 billion in inflows, while Grayscale’s converted GBTC fund experienced $5.23 billion in outflows.
BlackRock’s IBIT Surpasses Canadian ETFs
BlackRock’s IBIT, the U.S. spot Bitcoin ETF, has surpassed the assets under management of all Canadian Bitcoin ETFs combined. It reached 56,621 BTC (worth around $2.5 billion), while all Canadian Bitcoin ETFs have a total of 55,016 BTC ($2.4 billion) in AUM. Fidelity’s FBTC is also on track to reach this milestone with 51,064 BTC.
Hot Take: Spot Bitcoin ETFs Gain Momentum
The rise of spot Bitcoin ETFs has been remarkable, with significant inflows and increasing holdings. These new ETFs have quickly amassed billions of dollars’ worth of BTC, surpassing the market share of Grayscale’s GBTC. The shift in market dynamics highlights the growing interest and demand for regulated Bitcoin investment vehicles. As more institutional players enter the space, competition among ETF providers intensifies. This trend also demonstrates the maturation and acceptance of cryptocurrencies as an asset class. With BlackRock’s IBIT leading the way and Canadian ETFs close behind, the future looks promising for spot Bitcoin ETFs.
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