NFT BUILDS INC

You have not selected any currencies to display

Bitcoin ETFs Hit $10 Billion Milestone Within One Month of Approval

Bitcoin On February 9, the spot Bitcoin exchange-traded funds (ETFs) celebrated a remarkable achievement, surging to a combined $10 billion in assets under management (AUM) within their initial 20 trading sessions. This milestone underscores the rapid adoption and investor confidence in these newly introduced ETFs.Data provided by BitMEX Research indicates that the net flows for
 

 

Bitcoin ETFs Hit $10 Billion Milestone Within One Month of Approval
On February 9, the spot Bitcoin exchange-traded funds (ETFs) celebrated a remarkable achievement, surging to a combined $10 billion in assets under management (AUM) within their initial 20 trading sessions. This milestone underscores the rapid adoption and investor confidence in these newly introduced ETFs.

Data provided by BitMEX Research indicates that the net flows for the nine ETFs reached an impressive $2.7 billion on January 9. Notably, BlackRock’s IBIT fund leads the pack with a substantial $4 billion investment in Bitcoin (BTC), closely followed by Fidelity’s FBTC, managing over $3.4 billion in BTC assets.

Another notable player, ARK 21Shares’ fund, has also surpassed the billion-dollar mark, boasting a portfolio with approximately $1 billion worth of Bitcoin. Meanwhile, Grayscale’s GBTC experienced significant outflows totaling $6.3 billion over the past month, with a relatively minor outflow of $51.8 million on February 9, marking its lowest daily capital withdrawal since conversion.

Bitcoin ETF Flow – 9th Feb

All data out. Strong day at $541.5m of net inflow

Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3

— BitMEX Research (@BitMEXResearch) February 10, 2024

Bloomberg analyst Eric Balchunas observed the resilience of the Nine ETFs, stating, “I thought the Nine would get a bit weaker as GBTC outflows subsided but they’re getting stronger.”

Anticipating continued growth, trading firms are diligently assessing these investment vehicles over the coming months. Bitcoin’s price has shown stability, consolidating above key technical support levels in January, as highlighted by ARK Invest’s recent analysis.

According to ARK Invest, Bitcoin is progressively replacing gold as a preferred risk-off asset. The analysis notes a significant twenty-fold increase in Bitcoin’s price relative to gold over the past seven years, with Bitcoin now capable of purchasing approximately twenty troy ounces of gold compared to just one troy ounce in April 2017. This trend is expected to persist as Bitcoin solidifies its role in financial markets.

In light of prevailing macroeconomic conditions, ARK Invest predicts that Bitcoin will remain resilient, especially as inflation moderates and real rates climb, leading to continued loss of deposits for traditional banks.

The approval of Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC) on January 10 represents a watershed moment, arriving more than a decade after the initial attempt by Cameron and Tyler Winklevoss to launch the Winklevoss Bitcoin Trust in 2013.

Wasif Shakir

Subscribe to the Markets Outlook newsletter
Weekly newsletter that covers the main factors influencing Bitcoin’s price and the week ahead. Delivered every Monday

Related Post