The combined holdings of the “Newborn Nine” Bitcoin ETFs now stand at 95,000 BTC, with their total assets under management (AUM) approaching the $4 billion mark, as reported by available data.
Bloomberg ETF analyst Eric Balchunas noted that this substantial influx of capital underscores the growing interest among investors in digital assets and the expanding recognition of cryptocurrencies in mainstream financial circles.
Balchunas observed that, contrary to the typical trend where ETFs experience a decline in daily trading volume post-launch, the Newborn Nine have consistently demonstrated robust performance, with the fifth day of trading recording a notable 34% surge in volume.
$1B club
BlackRock’s IBIT and Fidelity’s FBTC have emerged as frontrunners in growth, with both funds experiencing substantial inflows surpassing $1.2 billion each in this brief timeframe. Each of these funds holds slightly over 30,000 Bitcoin.
Although Fidelity’s FBTC has recorded slightly higher inflows, BlackRock’s IBIT leads in assets under management (AUM), boasting $1.4 billion compared to Fidelity’s nearly $1.3 billion.
Among other noteworthy ETFs, Invesco’s ETF witnessed its most successful day on January 19, attracting over $63 million, yet its total AUM has yet to exceed $200 million. VanEck’s ETF has displayed a similar trajectory, breaking the $100 million AUM milestone on the sixth day of trading.
As of January 19, Valkyrie Investments and Franklin Templeton’s AUM stood at $71.7 million and $48.6 million, respectively. WisdomTree, on the other hand, is still striving to reach the $10 million AUM threshold.
Redemptions from Grayscale
The substantial influx of capital into recently launched Bitcoin ETFs has surpassed the outflows from the Grayscale Bitcoin Trust (GBTC), which experienced a $2.8 billion decrease in its assets under management during the same period.
GBTC witnessed a reduction in its holdings of spot Bitcoin shares, amounting to a loss of $1.62 billion in the initial four days. This indicates a shift in investor preference towards the new ETFs, which offer regulatory clarity and ease of access.
Despite the inherent volatility of Bitcoin, marked by a sell-off in the same timeframe, these ETFs have proven successful. This success is, in part, attributed to the redirection of outflows from GBTC towards these newly established spot Bitcoin ETFs.