In a noteworthy development within the cryptocurrency sphere, nine recently introduced spot Bitcoin exchange-traded funds (ETFs) have collectively garnered more than $4 billion worth of Bitcoin in just seven days of trading. The total assets under management (AUM) for these ETFs now exceed 100,000 BTC, equivalent to approximately $4 billion, excluding the Bitcoin Trust (GBTC) fund, which has been converted by Grayscale.
Key Players
The prominent nine ETFs driving this surge in Bitcoin holdings encompass BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW). BlackRock’s spot Bitcoin ETF (IBIT) takes the lead, boasting 40,213 BTC in holdings, followed closely by Fidelity’s FBTC with 34,152 BTC, according to data from K33 Research.
Aggregate Holdings and Exclusion of GBTC
As of the latest data on Monday, the cumulative holdings of these new ETFs reached 109,221 BTC. It is noteworthy that this calculation excludes Grayscale’s Bitcoin Trust (GBTC), which has observed a decrease in assets under management by $2.8 billion over the same period.
GBTC’s Decline and Inflows into ETFs
On the seventh day of U.S. spot Bitcoin ETF trading on January 22, the total trading volume reached $2.1 billion, with Grayscale’s GBTC leading at $1.1 billion. However, the new spot Bitcoin ETFs experienced substantial inflows, totaling $564.5 million on Monday, as reported by Bloomberg ETF analyst James Seyffart. BlackRock’s IBIT recorded a significant inflow of $272 million, followed by Fidelity’s FBTC at $159 million. Furthermore, other ETFs saw inflows below $100 million.
Challenges and Outflows
Despite the positive influx, the cryptocurrency market encountered challenges, particularly for Grayscale’s converted GBTC fund. The fund witnessed its most substantial daily outflow to date, totaling $640.5 million. This resulted in a net outflow of $76 million as Bitcoin’s price dipped below $40,000 for the first time in seven weeks. Currently, Bitcoin is trading at $39,227.
The swift accumulation of Bitcoin by the recently introduced spot ETFs signifies a growing institutional interest in the cryptocurrency market. The changing dynamics, coupled with challenges faced by Grayscale’s GBTC, underscore the evolving landscape of Bitcoin investments and the influence of these financial instruments on the broader market. Additionally, the upcoming weeks will be crucial in assessing the sustained impact of ETFs on the cryptocurrency space.
