Wow, what a journey it's been! And guess what? We're just getting started. The launch of spot bitcoin exchange-traded funds (ETFs) has been a major hit, but hold onto your hats because the real fun might be yet to come. Imagine this: big shots from the wealth management world diving into the fray, and it could happen sooner than we ever imagined. In the very first month, these ETFs saw an incredible $125 million flowing in each day. Can you believe it?
Even with Grayscale's Bitcoin Trust (GBTC) seeing some hefty outflows, it's still a heavyweight in the game. But these new ETFs? They're making some serious waves. U.S. wealth managers and Registered Investment Advisors (RIAs) haven't hopped on board just yet, but word on the street is they might join the party sooner than we think. Just a month back, there was a buzz in the air as the traditional finance world finally got the thumbs-up to launch a whole new investment avenue for crypto. Talk about exciting times!
Since then, it's been a rollercoaster ride. Brian D. Evans, the brain behind BDE Ventures, sums it up perfectly: "These ETFs have been killing it. We're seeing a flood of money coming in, and let me tell you, the excitement is real." Over the past four weeks, these ETFs have been gobbling up an average of $125 million worth of bitcoin every single day. And get this—even with GBTC seeing some outflows, these new kids on the block are holding strong.
In just a month, these bitcoin funds, excluding GBTC, have piled up over $11 billion worth of bitcoin. Three ETFs—BlackRock's IBIT, Fidelity's FBTC, and Ark 21's ARKB—have even crossed the $1 billion mark in assets under management. IBIT is really making a name for itself, rubbing shoulders with the big boys, ranking in the top five of all ETFs based on inflows in 2024 alongside giants like iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO).
All this buying frenzy is affecting bitcoin's price, which, after a little dip right after the launch, bounced back big time, soaring to a multi-year high above $50,000 recently. But what about GBTC? Well, it's been around the block for a while, but its recent conversion to a spot ETF hasn't stopped the outflows. Its assets under management have taken a hit, dropping from around $30 billion to just under $24 billion.
According to a report by Falcon X, many early investors are cashing out with over 100% profit. Despite the higher management fee, GBTC still has a loyal following, thanks to its trailblazing role in the crypto world.
So, what's next for bitcoin? Well, with the demand for these spot bitcoin ETFs through the roof, things might get a bit tricky down the line. The recent influx of money means thousands of bitcoins need to be bought every single day, way more than the 900 new tokens mined daily. And let's not forget about the upcoming Bitcoin halving event in April, where the number of new bitcoins mined daily will be cut in half to just 450. Exciting times ahead, folks!