Bitcoin ETFs Rapidly Accumulate 95,000 BTC, Nearing $4 Billion AUM
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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.
LATEST: Despite $GBTC seeing a -$590m outflow gash friday, The Nine overwhelmed it w/ +$623m (3rd best day), $IBIT & $FBTC both >$200m while $BTCO & $HODL had their best hauls to date. TOT NET FLOWS stand at +$1.2b as Nine's aum hit $4b vs GBTC's -$2.8b, upping aum share to 14%. pic.twitter.com/nB57H8Ro8s
— Eric Balchunas (@EricBalchunas) January 20, 2024
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.
This is interesting, the Newborn Nine actually saw a 34% jump in volume today vs yesterday. Normally with a hyped up launch you see volume steadily decrease each day post-launch, rare to see it reverse back up. All but one saw jump too but GBTC change flat so wasn't a volatility… pic.twitter.com/f6xOsLRWjr
— Eric Balchunas (@EricBalchunas) January 18, 2024
