In less than 30 days since their debut, new entrants of spot Bitcoin exchange-traded funds (ETFs), which include BlackRock (IBIT), Fidelity (FBTC), Ark 21Shares (ARKB), Invesco (BTCO), Bitwise (BITB), Valkyrie (BRRR), Franklin Templeton (EZBC), WisdomTree (BTCW), and VanEck (HODL) have collectively racked up over 200,000 BTC in assets under management, not counting Grayscale’s converted fund.
This accumulation signifies a pivotal shift in the crypto investment sphere, reflecting growing investor confidence and interest in Bitcoin as an asset class.
There we have it! The new nine have amassed more than 200k BTC.
Second-strongest daily U.S. spot flow since launch yesterday.
Since launch, the total net inflow to U.S. spot ETFs sits at a massive 51,134 BTC. pic.twitter.com/6RFugg7jZO
— Vetle Lunde (@VetleLunde) February 9,
Market Leaders In The New Spot ETF Era
With an accumulation of approximately 203,811 BTC, according to K33 Research, BlackRock’s IBIT and Fidelity’s FBTC stand out as the leaders, with IBIT holding over 80,000 BTC ($3.7 billion) and FBTC managing more than 68,000 BTC ($3.2 billion).
Same data in BTC terms… pic.twitter.com/999tMR8KVz
— BitMEX Research (@BitMEXResearch) February 9, 2024
These figures position these two funds at the forefront of the new spot ETF market, demonstrating their substantial impact in the short period since their inception.
Bloomberg ETF analyst Eric Balchunas highlighted the notable performance of these spot ETFs, noting their rapid ascent in a market traditionally dominated by long-established players.
Here’s a look at the Top 25 ETFs by assets after 1 month on the market (out of 5,535 total launches in 30yrs). $IBIT and $FBTC in league of own w/ over $3b each and they still have two days to go. $ARKB and $BITB also made list. pic.twitter.com/Yyi1nxukUk
— Eric Balchunas (@EricBalchunas) February 8, 2024
The trading volume of these new ETFs is also noteworthy. BlackRock’s IBIT recently outperformed Grayscale’s spot Bitcoin ETF in daily trading volume, a significant feat considering Grayscale’s longstanding presence in the market.
According to the report, BlackRock’s IBIT saw $301 million on Thursday, which exceeded GBTC’s 290 million. In addition, Fidelity’s FBTC also showed strong performance, securing the third spot with a trading volume of $170 million.
Still some after hours trading left but looks like BlackRock’s $IBIT is the first ETF to trade more than Grayscale’s $GBTC in a single day.
Total trading today was kind of a dud though at $924 million — first day below $1 billion in dollar volume for the group since launch. pic.twitter.com/JAdFGEEjj6
— James Seyffart (@Jmseyff) February 8, 2024
Bitcoin Latest Price Action
This influx of investment into spot Bitcoin ETFs coincides with a bullish trend in Bitcoin’s market value. Recently, Bitcoin has seen an upward trajectory, trading above $47,000 and approaching its previous high of $48,000 in January.
This positive market movement is reflected in the daily trading volumes, which have escalated significantly. The notable performance of these new spot ETFs and the concurrent rise in Bitcoin’s value underscores the growing mainstream acceptance of cryptocurrencies as viable investment vehicles.
Analyst Vetle Lunde from K33 Research pointed out that yesterday marked the strongest daily net inflow for Bitcoin investment vehicles globally since January 2021. With approximately 4.52% of the circulating BTC supply now held by investment vehicles, the crypto market shows signs of maturity and increased institutional participation.
February 8, 2024 – The strongest daily net inflow to BTC investment vehicles since January 19, 2021!
4.52% of the circulating BTC supply is currently held by investment vehicles. pic.twitter.com/Xv8ViqdMeo
— Vetle Lunde (@VetleLunde) February 9, 2024
Featured image from Unsplash, Chart from TradingView