- U.S.-listed spot Bitcoin ETFs have bought around 68,500 BTC, valued at $2.8 billion, signaling strong investor interest in cryptocurrencies.
- Despite the overall market growth, the Grayscale Bitcoin Trust experienced significant outflows, with over $2 billion withdrawn since its launch.
The U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have made a significant impact since their inception. According to recent data by CC15Capital on X, these ETFs have invested nearly $2.8 billion, or 68,500 Bitcoins. The incorporation of cryptocurrencies into traditional investing portfolios has reached a major turning point with this development. Notably, these figures do not include the Grayscale Bitcoin Trust (GBTC), which has seen continued outflows.
Trading Day Dynamics and Market Responses
Spot Bitcoin issuers saw a notable rise in cryptocurrency holdings on the fifth trade day. To their reserves, 10,667 more Bitcoins were added, totaling more than $440 million. This growth was driven by adding 8,700 Bitcoins to BlackRock’s iShares Bitcoin Trust (IBIT) assets.
However, the time frame also highlighted an opposing situation for the Grayscale Bitcoin Trust. Significant withdrawals were made from GBTC; on just the fifth day, traders took out $580 million, and since the coin’s launch, withdrawals have totaled more than $2 billion.
FINAL Update for 1/18 #Bitcoin ETF Holdings
$GBTC posted their data, showing slightly worse outflow than my estimate.
On a net basis, ETFs bought 27,371 #Bitcoin since ETF launch.
Ready for 1/19 data
$IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC $BTCW $DEFI $GBTC pic.twitter.com/4ZIM1mSCcZ
— CC15Capital
(@Capital15C) January 19, 2024
Additionally, there was a noticeable 34% increase in spot Bitcoin ETF trade volumes at this time, excluding GBTC. This upsurge suggests that investor interest in Bitcoin ETFs is expanding, as it defies the usual trend seen after debut, where trading volumes frequently decline. The growing number of trades indicates that the market is more excited about these financial instruments.
Comparative Analysis with Traditional ETFs
By contrast, the recently authorized Bitcoin exchange-traded funds (ETFs) in the United States have quickly accumulated $27.5 billion in assets. Though it currently lags behind the $96 billion in Gold ETFs, its quick accumulation exceeds the $11 billion in assets under management for Silver ETFs. Similarly, inflows into cryptocurrency investment products were also observed, with a noteworthy $1.2 billion reported in the second week of January.
In addition, $1.9 billion was invested in the first few days after the introduction of nine new exchange-traded funds (ETFs) that track the spot price of Bitcoin. This amount exceeded the initial investments in other significant ETFs, like the SPDR Gold Shares ETF and the ProShares Bitcoin Strategy ETF. Even with these striking figures, the investments failed to meet the more optimistic estimates of billions of dollars in first-day flows.
Fee Structures and Market Competition
The fee structures among the nine new Bitcoin ETF issuaries vary, ranging from a low of 0.19% to a high of 0.39%. BlackRock’s iShares Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund have attracted substantial investments, partly thanks to their competitive fee strategies. Even after scheduled increases, these fees will remain below the average ETF fee of 0.54%, as calculated by Morningstar Inc.
The performance of Bitcoin since the ETFs’ launch shows a decline of over 8%, posing questions about these investment vehicles’ long-term appeal and stability. Analysts are closely monitoring the trend to gauge the staying power of these ETFs and their ability to continue attracting both retail and institutional investors.
