Bitcoin ETFs Rapidly Accumulate 95,000 BTC, Nearing $4 Billion AUM
In just six days of trading, the recently approved spot Bitcoin exchange-traded funds (ETFs) have collectively accumulated an impressive 95,000 BTC, with total assets under management (AUM) inching close to the $4 billion mark.
According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, the inflow into these newly launched ETFs has now exceeded the outflows from the Grayscale Bitcoin Trust (GBTC).
Total net flows now stand at +$1.2 billion, Balchunas stated in his X post from Saturday.
LATEST: Despite $GBTC seeing a -$590m outflow gash friday, The Nine overwhelmed it w/ +$623m (3rd best day), $IBIT & $FBTC both >$200m while $BTCO & $HODL had their best hauls to date. TOT NET FLOWS stand at +$1.2b as Nine's aum hit $4b vs GBTC's -$2.8b, upping aum share to 14%. pic.twitter.com/nB57H8Ro8s
— Eric Balchunas (@EricBalchunas) January 20, 2024
GBTC, which operates with notably higher fees than the other ETFs in the sector, saw its assets under management (AUM) fall by around $2.8 billion within the first six days of trading, causing concern among many in the Bitcoin community.
The GBTC outflows have long been expected to happen, with JPMorgan analysts saying as early as in November last year that outflows of at least $2.7 billion should be expected unless GBTC’s current fee of 200 basis points is lowered to around 50 basis points.
Leading the pack among the ETFs are Fidelity’s (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT), amassing inflows of $1.28 and $1.23 billion, respectively.
Fidelity is known as one of the more crypto-friendly traditional finance firms in the US. This could be one reason behind the popularity of its Bitcoin ETF. Among other things, the firm has argued in a report that “Bitcoin is better
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