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In a significant development in the cryptocurrency realm, nine newly launched spot Bitcoin exchange-traded funds (ETFs) have together accumulated over $4 billion worth of Bitcoin within the initial seven days of trading. The combined assets under management (AUM) for these ETFs now surpass 100,000 BTC, approximately valued at $4 billion. It’s important to note that this total excludes the Bitcoin Trust (GBTC) fund, which has undergone conversion by Grayscale.
Key Players
The leading force behind the increase in BTC holdings involves nine prominent ETFs, namely BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW). Taking the lead is BlackRock’s spot Bitcoin ETF (IBIT), holding an impressive 40,213 BTC, closely followed by Fidelity’s FBTC with 34,152 BTC, as reported by K33 Research.
Jan 19 (cont)
The newborn U.S. spot ETFs now hold more than 80,000 BTC.
Both BlackRock and Fidelity have moved into the top 6.
GBTC is by far the biggest loser since the ETF launch. Canadian-based Purpose and CI Galaxy and European BTCE have also faced considerable outflows. pic.twitter.com/gafGSQ6UKQ
— Vetle Lunde (@VetleLunde) January 19, 2024
According to the most recent data available on Monday, the combined holdings of these recently introduced ETFs amounted to 109,221 BTC. It’s important to highlight that this computation does not take into account Grayscale’s BTC Trust (GBTC), which has experienced a $2.8 billion reduction in assets under management during the corresponding period.
GBTC’s Shrinkage vs. ETFs’ Surge: A Cryptocurrency Shift
On January 22, the seventh day of trading for U.S. spot BTC ETFs, the overall trading volume reached $2.1 billion, with Grayscale’s GBTC leading with $1.1 billion. However, substantial inflows were observed in the newly introduced spot Bitcoin ETFs on Monday, totaling $564.5 million, according to insights from Bloomberg ETF analyst James Seyffart. Notably, BlackRock’s IBIT attracted a substantial inflow of $272 million, followed by Fidelity’s FBTC with $159 million. Additionally, other ETFs experienced inflows below $100 million.
Bitcoin ETF Dynamics: GBTC Faces Challenges, Witnesses Substantial Outflows
Despite the positive inflow, the cryptocurrency market faced challenges, particularly for Grayscale’s converted GBTC fund. The fund experienced its most significant daily outflow to date, amounting to $640.5 million. This resulted in a net outflow of $76 million, coinciding with BTC’s price dropping below $40,000 for the first time in seven weeks.
Presently, Bitcoin is valued at $39,227. The rapid accumulation of BTC by recently introduced spot ETFs indicates a growing institutional interest in the cryptocurrency market. The shifting dynamics, along with challenges encountered by Grayscale’s GBTC, highlight the evolving landscape of Bitcoin investments and the impact of these financial instruments on the broader market. Additionally, the upcoming weeks will be pivotal in assessing the sustained influence of ETFs on the cryptocurrency space.
