Bitcoin ETFs Reach $10B Milestone Month After Approval

• Bitcoin Spot ETFs complete its first month of trading. 
• Over the past month, issuers raked in $10 billion in AUM. 
• Inflows in Bitcoin are only expected to increase as trading firms complete their due diligence. 

It’s been a month since the SEC approved Bitcoin ETFs , igniting a flurry of activity in the market in its wake. Leading issuers like BlackRock and Fidelity have emerged as titans, reeling in billions in inflows and achieving major milestones. Their success, marked by impressive numbers , has set the pace for others to follow suit, resulting in significant market growth. 

With no signs of slowing down, here’s how Bitcoin ETFs have been faring after a month of trading. 

Bitcoin Spot ETFs Reel in $10 Billion

Bitcoin Spot ETFs wrapped up their 20th trading session on Friday, February 9, marking a significant milestone since their approval on January 10. Over the past month, the financial instrument amassed $10 billion in assets under management (AUM), sparking excitement in the market.

As of the latest update, BlackRock’s iShares Bitcoin Trust leads the pack with over $4 billion in assets, closely followed by Fidelity’s Wise Origin Bitcoin Fund, which manages over $3.4 billion in Bitcoin. Additionally, ARK 21 Shares recently crossed the billion-dollar milestone after Friday’s market close. 

The market’s interest in Bitcoin ETFs has only grown since approval , consistently recording positive net inflows, even in the wake of GrayScale Bitcoin Trust (GTBC) experiencing outflows amounting to a whopping $6.3 billion in the past month. Nevertheless, better times loom on the horizon for GrayScale as outflows stagnate , with February 9 marking the lowest daily volume of capital withdrawals since the conversion.

Given the positive momentum of Bitcoin ETFs, inflows are only expected to increase, especially now that trading firms have completed their due diligence on the investment vehicles. In line with this trend, Bitcoin spot ETF witnessed a net inflow of US$541 million on February 9, marking a record high in net inflows, excluding the first trading day.

Additionally, mirroring the positive sentiment, Bitcoin’s price has risen by 12% over the past week and surpassed the $48,000 mark for the first time since January 11.

On the Flipside

• Despite Grayscale’s wavering dominance, the firm still manages the most Bitcoin assets at over 500,000 BTC.
• Grayscale’s Bitcoin exodus is likely driven by its high fee rate, which is set at 1.5%
• Based on inflows, BlackRock and Fidelity’s Bitcoin ETFs have become two of the top ten ETFs this year. 
• Bitcoin ETFs are the second-largest commodity ETF, trailing only behind Gold ETFs.

Why This Matters

Given their success, Bitcoin Spot ETFs are on track to eclipse every other ETF in the market. Should the financial instrument maintain momentum after amassing $10 billion in its first month, it could even surpass Gold ETFs, potentially impacting Bitcoin’s price and the future of crypto accessibility for mainstream investors.

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