In just six days of trading, the recently approved spot Bitcoin exchange-traded funds (ETFs) have experienced a remarkable influx of bitcoins (BTC). These ETFs have collectively accumulated over 95,297 BTC, amassing a total of 647,374 BTC including the assets of the Grayscale Bitcoin Trust (GBTC). The growing popularity of these ETFs can be attributed to the surge in volumes and the assets under management (AUM) which have exceeded $3.96 billion. This article delves deeper into the individual ETFs and their respective asset figures.
Among the “Newborn Nine” Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) stands at the forefront with 33,706 BTC. Following closely is Fidelity’s Wise Original Bitcoin Fund (FBTC) with 30,384 BTC. Bitwise (BITB) holds 10,235 BTC, Ark Invest/21 Shares’ ARKB boasts 9,134 BTC, and Invesco’s BTCO secures 6,192 BTC. On the other end of the spectrum, the VanEck Bitcoin Trust (HODL), Valkyrie Bitcoin Fund (BRRR), and Franklin Templeton’s EZBC have the lowest figures, amassing 2,566 BTC, 1,726 BTC, and 1,169 BTC respectively. The WisdomTree Bitcoin Fund (BTCW) holds the least assets, amounting to a mere 182 BTC.
Although the Grayscale Bitcoin Trust (GBTC) has been in existence since 2013, it converted into an ETF earlier this month. This conversion has solidified its position as the spot Bitcoin ETF holding the most BTC, with a staggering 552,077 BTC. Despite recording $590 million in outflows on Friday, GBTC remains a formidable player in the Bitcoin ETF market. Interestingly, the “Newborn Nine” ETFs have surpassed GBTC in terms of net flows, accumulating approximately $1.2 billion in total, with an AUM inching towards the $4 billion mark. GBTC’s AUM, however, currently stands at $2.8 billion, which corresponds to a 14% share.
The Future of the ETF Market
Speculations are rife regarding the proportion of GBTC outflows that will be directed towards the new ETFs. The Bloomberg analyst, Eric Balchunas, opines that only a small fraction of the outflows will find their way into the “Newborn Nine” ETFs. He suggests that most of the outflows are from individuals associated with the bankrupt crypto exchange FTX and traders who engaged in arbitrage to take advantage of the discount. Balchunas emphasizes that the flows to the new ETFs demonstrate their potential to garner substantial assets, considering the proportionality of the flows to the size of the firm.
As the Bitcoin ETF market flourishes, attracting billions of dollars in investments, it becomes increasingly evident that these investment vehicles are gaining traction among both institutional and retail investors. With a multitude of options now available, investors have the opportunity to diversify their Bitcoin holdings and potentially benefit from the growth of the cryptocurrency market. Only time will reveal the true impact of Bitcoin ETFs on the broader financial landscape, but their swift rise suggests they are here to stay.
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