As investor interest in Bitcoin grows, the Bitcoin exchange-traded funds (ETFs) nicknamed “Newborn Nine” have acquired a total of 95,000 BTC, boosting their assets under management to nearly $4 billion.
Bloomberg’s ETF analyst Eric Balchunas points out that these developments indicate an increase in investor demand for digital assets and a broader acceptance of cryptocurrencies in the financial world. The Newborn Nine maintained high trading volume, unlike most ETFs, with a 34% increase in trading volume on their fifth day after launch.
Billion-Dollar Bitcoin ETF Club
BlackRock‘s IBIT and Fidelity’s FBTC stand out in this field. Both funds attracted over $1.2 billion in capital in a short time and each holds more than 30,000 Bitcoins.
Although Fidelity’s FBTC received higher inflows, BlackRock’s IBIT surpasses it with a total asset management (AUM) of $1.4 billion compared to Fidelity’s $1.3 billion.
Among other significant ETFs, Invesco’s fund had its best day on January 19, attracting more than $63 million in capital, but the total AUM did not exceed $200 million. VanEck’s ETF also crossed the $100 million AUM mark on its sixth trading day.
Additionally, as of January 19, Valkyrie Investments and Franklin Templeton’s ETFs had AUMs of $71.7 million and $48.6 million, respectively. WisdomTree has not yet surpassed the $10 million mark.
Rise of Bitcoin ETFs Overshadows Losses of GBTC
The substantial investments in the newly launched Bitcoin ETFs have overshadowed the withdrawals from Grayscale Bitcoin Trust (GBTC) during the same period. GBTC experienced a decrease of $2.8 billion in its AUM during this time.
GBTC showed a decline in spot Bitcoin shares with a loss of $1.62 billion in the first four days. This reflects investors’ preference for new, more regulated, and accessible ETFs over GBTC.
Despite Bitcoin’s sales and volatile nature during the same period, these ETFs were successful. This success is largely attributed to the capital flow from GBTC to the new spot Bitcoin ETFs.
