On February 9th, we cheered a big win for the recently launched Bitcoin spot Exchange-Traded Funds (ETFs) as they hit a whopping $10 billion in assets under management (AUM) just 20 days after starting to trade. BitMEX Research shared data showing a hefty $2.7 billion flowing into these nine ETFs by January 9th. Leading the pack was BlackRock’s IBIT fund, handling $4 billion worth of Bitcoin. Not far behind, Fidelity’s FBTC managed over $3.4 billion in Bitcoin assets.
The ARK 21Shares fund also joined the billion-dollar club, holding about $1 billion in Bitcoin in its portfolio. On the flip side, Grayscale’s GBTC saw outflows of $6.3 billion in the past month, hitting its lowest daily outflow on February 9th at $51.8 million since converting.
Bloomberg analyst Eric Balchunas praised the resilience of these funds, especially with GBTC's outflows shrinking. He sees a positive trend among the nine Bitcoin ETFs. The coming months are expected to bring more inflows as trading entities finalize their evaluations of these investment products. Bitcoin's price stayed steady above crucial technical and on-chain support levels in January, as noted by ARK Invest.
They also suggested a bullish view on Bitcoin possibly overtaking gold as a preferred asset in risk-averse strategies. This analysis was backed by Bitcoin's price rise compared to gold, hinting at a trend of Bitcoin's integration into financial markets amid changing economic conditions, including cooling inflation and rising real rates.
On January 10th, the U.S. Securities and Exchange Commission (SEC) gave the green light to Bitcoin ETF applications from various firms including ARK 21Shares, Invesco Galaxy, VanEck, Wisdom tree, Fidelity, Valkyrie, Black Rock, and Grayscale. This marked a significant moment over a decade after Cameron and Tyler Winklevoss first applied in 2013 for the Winklevoss Bitcoin Trust. This milestone highlights the growing acceptance and integration of Bitcoin into the traditional financial system, showcasing a changing landscape for digital asset management.