Bitcoin ETFs Reach $10 Billion Milestone in Assets Under Management
The newly launched Bitcoin exchange-traded funds (ETFs) have made a strong impact in the market, surpassing $10 billion in assets under management (AUM) within just 20 trading sessions.
Recent data from BitMEX Research shows that the nine ETFs have seen a total net flow of $2.7 billion as of January 9th, with BlackRock’s IBIT fund leading the pack with $4 billion worth of Bitcoin (BTC) in its portfolio. Fidelity’s FBTC comes in second with over $3.4 billion in BTC under management.
ARK 21Shares’ fund has also hit the billion-dollar milestone, currently holding approximately $1 billion worth of Bitcoin. In contrast, Grayscale’s GBTC has seen outflows of $6.3 billion in the past 30 days. However, the fund recorded its smallest daily volume of capital withdrawals since conversion on February 9th, with just $51.8 million in outflows.
“Despite expectations of a decline in the Nine’s strength due to GBTC outflows, they have actually shown resilience and continue to thrive,” noted Bloomberg analyst Eric Balchunas on X (formerly Twitter).
Bitcoin ETF Flows Expected to Increase as Trading Firms Complete Due Diligence
As trading firms continue their due diligence on investment vehicles, it is expected that Bitcoin ETF flows will see a significant increase in the coming months.
In January, Bitcoin’s price remained above key technical support levels, such as its 200-day moving average ($29,902) and on-chain mean ($33,487), according to a recent analysis by ARK Invest. Despite market consolidation, the cryptocurrency saw a 0.6% increase in price, reaching $42,585.
ARK Invest’s analysis suggests that Bitcoin is becoming a preferred risk-off asset, replacing gold in this role. In the last 7 years, Bitcoin’s price relative to gold has increased by twenty-fold, and by January 2024, it is predicted that Bitcoin will be able to buy approximately 20 troy ounces of gold, compared to just 1 troy ounce in April 2017. The asset manager believes that this trend will continue, as Bitcoin continues to solidify its position in financial markets.
Looking at the current macroeconomic environment, ARK Invest predicts that as inflation decreases and real rates rise, Bitcoin will remain resilient, as banks continue to lose deposits. This further solidifies Bitcoin’s antifragile nature and its potential to thrive in uncertain economic conditions.
On January 10, the U.S. Securities and Exchange Commission (SEC) granted approval for Bitcoin ETF applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale. This comes more than 10 years after Cameron and Tyler Winklevoss first applied to launch the Winklevoss Bitcoin Trust in 2013. As the crypto market continues to gain traction, many are wondering how to get involved and what to buy. Some are turning to daily crypto podcasts for guidance, while others are looking into crypto real estate investments. Regardless of how one chooses to get involved, it’s clear that cryptocurrency is here to stay. In fact, experts predict that January 2022 could see even more growth in the crypto industry, with major banks also showing interest in this emerging market.
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