Bitcoin ETFs amass Over 100,000 BTC in assets under management

Nine new spot Bitcoin ETFs have collectively accumulated more than 100,000 BTC, valued at approximately $4 billion in assets under management.  This achievement underscores the growing interest among investors in gaining exposure to Bitcoin through these exchange-traded funds.

Leading ETFs and their holdings

Among the nine newly launched Bitcoin ETFs, BlackRock’s IBIT stands out as the leader, boasting a substantial 40,213 BTC in holdings. Following closely is Fidelity’s FBTC spot Bitcoin ETF, with an impressive 34,152 BTC under management, according to data from K33 Research.

These two funds have established themselves as frontrunners in the rapidly evolving Bitcoin ETF landscape.

As of the latest available data, the collective holdings of the new spot Bitcoin ETFs have surged past the 100,000 BTC mark, a milestone that underscores the growing confidence of investors in the cryptocurrency market. It’s important to note that this calculation excludes the assets held by Grayscale’s Bitcoin Trust (GBTC), which has witnessed a notable decline in assets under management, falling by $2.8 billion during the same period.

GBTC’s decline and new ETFs’ rise

The decline in GBTC’s assets is significant, with the fund’s holdings dropping from approximately 619,220 BTC to 552,680 BTC. This represents a 10% decrease in assets, equivalent to a reduction of 66,540 BTC. Notably, this decrease in GBTC’s assets accounts for a substantial portion of the Bitcoin now held by the new spot Bitcoin ETFs.

The seventh day of U.S. spot Bitcoin ETF trading, which occurred on January 22nd, witnessed a total trading volume of $2.1 billion. A significant portion of this volume, amounting to $1.1 billion, was attributed to GBTC, as per data from The Block’s data dashboard. The new spot Bitcoin ETF products also made their mark, registering a total of $564.5 million in inflows on the same day.

BlackRock’s IBIT led the way in terms of inflows, attracting $272 million, marking its third-largest inflow day. Fidelity’s FBTC followed closely with $159 million in inflows. While the remaining ETFs recorded inflows below $100 million, this surge in investor interest demonstrates the appetite for Bitcoin exposure through ETFs.

Challenges for GBTC

Despite the positive momentum for the new spot Bitcoin ETFs, Grayscale’s converted GBTC fund faced its largest daily outflow to date, amounting to a substantial $640.5 million. This significant outflow resulted in a net outflow of $76 million on that day, coinciding with Bitcoin’s price falling below the $40,000 mark for the first time in seven weeks. As of the latest data, Bitcoin is currently trading at $39,227.

The emergence of nine new spot Bitcoin ETFs accumulating over 100,000 BTC in assets under management marks a significant development in the cryptocurrency investment landscape. While GBTC faces challenges with declining assets, these ETFs are gaining traction among investors, highlighting the growing interest in accessing Bitcoin through regulated exchange-traded funds.