Spot Bitcoin ETFs surpass $10 billion in AUM a month after launch, signaling strong investor confidence in Bitcoin.
Recently, the collection of nine newly approved spot Bitcoin ETFs has surpassed a significant financial landmark, amassing over $10 billion in assets under management (AUM) by February 9. This achievement comes merely a month after their introduction to the market, showcasing the growing investor interest and confidence in Bitcoin as a legitimate investment vehicle.
The initiation of these spot Bitcoin ETFs has been met with substantial enthusiasm, as indicated by the $2.7 billion net inflow recorded on January 9, primarily spearheaded by the iShares Bitcoin Trust from BlackRock. This particular fund now boasts an impressive $4 billion in Bitcoin holdings. Not far behind, Fidelity’s Wise Origin Bitcoin Fund oversees more than $3.4 billion in Bitcoin assets, securing its position as the second-largest fund of its kind.
Additionally, the ARK 21Shares Bitcoin ETF has also hit the billion-dollar mark in its portfolio, underscoring the diversified yet robust growth across various funds within this new sector.
Despite the Grayscale Bitcoin Trust (GBTC) experiencing a $6.3 billion outflow over the past month, the overall momentum of Bitcoin ETFs appears undeterred, with Bloomberg analyst Eric Balchunas remarking on their strengthening position despite GBTC’s outflows.
Bitcoin in Financial Markets
As trading firms wrap up their due diligence processes, they expect an upswing in Bitcoin ETF flows in the forthcoming months. This optimistic outlook comes from Bitcoin’s solid performance above key technical and on-chain support levels in January. ARK Invest’s analysis further highlights Bitcoin’s emerging role as a preferable asset over gold, noting a significant increase in Bitcoin’s value relative to gold over the past seven years.
This shift suggests a broader acceptance of Bitcoin in financial markets, potentially replacing traditional safe-haven assets like gold. With Bitcoin now being able to purchase approximately 20 troy ounces of gold, compared to just 1 ounce back in April 2017, ARK Invest anticipates this trend to persist as Bitcoin cements its position within the financial ecosystem.
Moreover, the macroeconomic forecast aligns Bitcoin’s resilience with cooling inflation and rising real rates, hinting at its capacity to thrive even as traditional banking sectors face challenges. This perspective aligns with the United States Securities and Exchange Commission’s (SEC) approval of Bitcoin ETF applications from leading firms such as ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale on January 10, a significant milestone following the initial application by Cameron and Tyler Winklevoss in 2013.