Bitcoin ETFs Reach $10 Billion in Assets

Recently launched spot Bitcoin exchange-traded funds (ETFs) have completed their initial 20 trading sessions, surpassing the $10 billion milestone in assets under management (AUM).

Data from BitMEX Research reveals that net flows for the nine ETFs amounted to $2.7 billion on Jan. 9, led by BlackRock’s iShares Bitcoin Trust, which currently holds Bitcoin valued at $4 billion.

Following closely is Fidelity’s Wise Origin Bitcoin Fund, managing over $3.4 billion in BTC.

The ARK 21Shares Bitcoin ETF also reached the billion-dollar threshold, holding approximately $1 billion worth in its portfolio.

Meanwhile, Grayscale Bitcoin Trust (GBTC) experienced outflows totaling $6.3 billion over the past 30 days, with $51.8 million in outflows recorded on Feb. 9, marking its lowest daily volume of capital withdrawals since conversion.

Bloomberg analyst Eric Balchunas observed, "I thought the Nine would get a bit weaker as GBTC outflows subsided but they’re getting stronger," on X.

In the coming months, Bitcoin ETF flows are anticipated to rise as trading firms finalize their due diligence on these investment vehicles.

Bitcoin's price demonstrated consolidation above technical support in January, including its 200-day moving average ($29,902) and on-chain mean ($33,487), as indicated by recent analysis from ARK Invest.

Throughout the month, the cryptocurrency price saw a modest increase of 0.6% to $42,585.

ARK Invest takes a bullish stance, viewing Bitcoin as supplanting gold as a risk-off asset.

Their analysis highlights that Bitcoin's price relative to gold has grown twenty-fold in the last seven years, with Bitcoin able to purchase approximately 20 troy ounces of gold in January 2024, compared to just one troy ounce in April 2017.

They anticipate this trend to persist as Bitcoin expands its role in financial markets.

Considering the macroeconomic landscape, the asset manager predicts that "as inflation cools and real rates rise, Bitcoin should remain antifragile as banks continue to lose deposits."

The United States Securities and Exchange Commission (SEC) approved Bitcoin ETF applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale on Jan. 10, more than a decade after Cameron and Tyler Winklevoss applied to launch the Winklevoss Bitcoin Trust in 2013.

Sources:

https://cointelegraph.com/news/bitcoin-etfs-hit-10b-milestone-just-month-after-approval

https://twitter.com/BitMEXResearch/status/1756239419504316624

https://twitter.com/21shares_us/status/1756080097520411066