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So far, the nine newly launched US spot Bitcoin exchange-traded funds (ETFs) have achieved a notable milestone, collectively accumulating over 300,000 BTC in assets under management (AUM) – a figure amounting to nearly 1% of BTC supply of 21 million – in just less than two months after their inception.
This feat underscores the growing investor interest in Bitcoin and the increasing adoption of cryptocurrency investment products in traditional financial markets.
Notably, these nine US spot BTC ETFs include BlackRock (IBIT), Fidelity (FBTC), Ark 21Shares (ARKB), Invesco (BTCO), Bitwise (BITB), Valkyrie (BRRR), Franklin Templeton (EZBC), WisdomTree (BTCW), and VanEck (HODL).
Spot Bitcoin ETFs Break New Record
According to data from K33 Research, since their debut on January 11, these nine new entrants of spot Bitcoin ETF have rapidly gained traction, attracting a total of 303,002 BTC, equivalent to $17 billion at yesterday’s closing prices.
The newborn nine have amassed 300,000 BTC! pic.twitter.com/TfNWGgsSmg
— Vetle Lunde (@VetleLunde) February 27, 2024
This influx of funds highlights investors’ confidence in Bitcoin as a long-term investment asset. Leading the pack among these nine ETFs is BlackRock’s IBIT spot Bitcoin ETF, boasting over 128,615 BTC worth roughly $7.2 billion in AUM, followed closely by Fidelity’s FBTC with more than 94,455 BTC worth $5.2 billion, as reported by BitMEX Research.
Bloomberg Senior ETF Analyst Eric Balchunas commented on this historic achievement, emphasizing the growing demand for cryptocurrency investment products.
It’s official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM
— Eric Balchunas (@EricBalchunas) February 26, 2024
While also making comments on the factors behind this feat, Balchunas noted:
Not totally sure reason besides price rally generating interest but it does seem like these things really see heightened action on first day after wknd
Meanwhile, as shown in Coinglass’ data, the assets managed by Grayscale’s converted GBTC fund have notably decreased, plummeting by more than 28% since January 11. The fund’s holdings, which stood at around 619,000 BTC ($35 billion) then, have dwindled to 444,000 BTC ($25 billion).
Grayscale Bitcoin Holdings
Bitcoin ETF Surge Sparks Market Impact
It is worth noting that the surge in BTC ETFs has also significantly impacted market inflows and outflows. Total net inflows across all US spots of Bitcoin ETFs exceeded $6 billion yesterday, witnessing nearly $520 million in net inflows — the highest in two weeks.
[2/3] Same data in BTC terms…
9,510 BTC net inflow on 26th Feb. pic.twitter.com/UiLK2qrJ7I
— BitMEX Research (@BitMEXResearch) February 27, 2024
Furthermore, BTC spot ETFs have also played a significant role in last week’s inflow of crypto investment products, as revealed by CoinShares data.
As crypto investment products attracted approximately $598 million in investments over the past week alone, a notable dominance came from Bitcoin-based funds, particularly spot ETFs, which drew in $570 million of the total investments.
Featured image from Unsplash, Chart from TradingView
