Bitcoin ETFs Amass $4B in Assets in Six Days of Trading

Nine Bitcoin ETF issuers’ holdings swell by 95,000 bitcoins in just one week while Grayscale falters.

Five Bitcoin Spot ETF's appeared on a land.
Created by Kornelija Poderskytė from DailyCoin
  • TradFi demand for Bitcoin ETF continues to grow. 
  • Asset managers are quietly gobbling up bitcoins in the market. 
  • Issuers accumulated almost $4 billion in just six days of trading. 

Bitcoin ETFs are finally a reality after much anticipation. Since gaining approval on January 10, the financial instrument has been making waves in the TradFi industry, drawing in a surge of investors looking to gain exposure to the crypto market. 

With no signs of slowing down, Bitcoin ETFs maintain their grip on the financial world as they accumulate billions in assets in their first week of trading.  

Bitcoin ETF Issuers Fill Their Pockets

TradFi demand for Bitcoin ETFs continues to grow even in the face of the crypto market receiving a slight dent in its bullish structure. After six days of trading, nine out of the eleven approved spot Bitcoin ETF issuers have collectively accumulated over 95,000 bitcoins, worth approximately $4 billion. 

Leading the pack among the nine ETFs are BlackRock and Fidelity, each attracting over $1.2 billion in inflows. While Fidelity experienced slightly higher capital inflows, BlackRock maintained a higher total assets under management, with $1.4 billion compared to Fidelity’s nearly $1.3 billion.

Early figures from senior Bloomberg analyst Eric Balchunas reveal that the capital inflow into these nine new ETFs surpasses the outflows from the Grayscale Bitcoin Trust. During the same six-day period, Grayscale’s assets under management witnessed a decline of $2.8 billion.

Nevertheless, Friday marked one of the best inflows since the approval, with most issuers collectively attracting at least $600 million. While other funds made gains, Grayscale Bitcoin Trust bore the brunt of outflows, with over $590 million flowing out, bringing the total net inflow to a modest $33.1 million on the sixth day of trading. 

On the Flipside

  • Crypto analysts suggest that a Bitcoin supply crunch is on the horizon because of the spot’s success. 
  • Bitcoin ETFs are the second-largest commodity ETF, trailing only behind Silver ETFs.

Why This Matters

Bitcoin ETFs have taken the financial world by storm. The surge in funds flowing into the financial product, coupled with the increasing crypto assets managed by asset managers, can propel the industry to unprecedented heights and reshape investors’ perceptions of the crypto space.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.