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Bitcoin ETFs Rapidly Accumulate 95,000 BTC, Nearing $4 Billion AUM

Fredrik Vold
Last updated: | 1 min read
Bitcoin ETFs Rapidly Accumulate 95,000 BTC, Nearing $4 Billion AUM
Source: Adobe / Jhonsmetal

In just six days of trading, the recently approved spot Bitcoin exchange-traded funds (ETFs) have collectively accumulated an impressive 95,000 BTC, with total assets under management (AUM) inching close to the $4 billion mark.

According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, the inflow into these newly launched ETFs has now exceeded the outflows from the Grayscale Bitcoin Trust (GBTC).

Total net flows now stand at +$1.2 billion, Balchunas stated in his X post from Saturday.

GBTC, which operates with notably higher fees than the other ETFs in the sector, saw its assets under management (AUM) fall by around $2.8 billion within the first six days of trading, causing concern among many in the Bitcoin community.

The GBTC outflows have long been expected to happen, with JPMorgan analysts saying as early as in November last year that outflows of at least $2.7 billion should be expected unless GBTC’s current fee of 200 basis points is lowered to around 50 basis points.

Fidelity and BlackRock’s Bitcoin ETFs Leading

Leading the pack among the ETFs are Fidelity’s (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT), amassing inflows of $1.28 and $1.23 billion, respectively.

Fidelity is known as one of the more crypto-friendly traditional finance firms in the US. This could be one reason behind the popularity of its Bitcoin ETF. Among other things, the firm has argued in a report that “Bitcoin is better than gold” when it comes to fulfilling specific requirements in an investment portfolio.

Invesco in Third Spot

Invesco’s ETF secured the third spot and has experienced consistent growth, achieving its best day for inflows on January 19 with over $63 million.

Despite this, its total AUM have yet to surpass the $200 million mark.

VanEck’s ETF also celebrated its best day for inflows on the same day, propelling its total AUM to over $100 million.

On Thursday last week, Balchunas shared data highlighting that the nine new BTC ETFs experienced a notable 34% increase in daily trading volume by the fifth day of trading.Top of Form

“Normally with a hyped up launch you see volume steadily decrease each day post-launch, rare to see it reverse back up,” the experienced ETF analyst said at the time.