TL;DR
- The Bitcoin ETF market has experienced exceptional growth in recent weeks, accumulating over 303,000 BTC, equivalent to approximately $17 billion.
- Since their launch less than eight weeks ago, the ETFs have shown steady growth in their assets under management, with nine major funds including BlackRock, Fidelity, Bitwise, Ark Invest 21Shares, Invesco, VanEck, Valkyrie, Franklin Templeton, and WisdomTree.
- ETFs now control nearly 1.5% of Bitcoin’s total supply, surpassing major market players like MicroStrategy and Tether. Additionally, they have experienced considerable inflows, with a total of over $6 billion registered.
The Bitcoin Exchange-Traded Fund (ETF) market has experienced extraordinary growth in recent weeks, accumulating a total of over 303,000 BTC, according to recent data. This figure, equivalent to approximately $17 billion, reflects notable investor interest in these new investment vehicles centered around BTC.
Since their launch less than eight weeks ago, these ETFs have shown steady growth in their assets under management (AUM), with nine major funds including BlackRock, Fidelity, Bitwise, Ark Invest 21Shares, Invesco, VanEck, Valkyrie, Franklin Templeton, and WisdomTree. This rapid adoption demonstrates the growing acceptance of Bitcoin as a legitimate and attractive asset class for traditional investors.
The newborn nine have amassed 300,000 BTC! pic.twitter.com/TfNWGgsSmg
— Vetle Lunde (@VetleLunde) February 27, 2024
One of the highlights is that the ETFs now control nearly 1.5% of Bitcoin’s total supply, underscoring their significant impact on the cryptocurrency market. This share even surpasses major market players like MicroStrategy and Tether.
Grayscale’s GBTC Fell 28% Amid Success of Bitcoin ETFs
Success is also reflected in the considerable inflows they have experienced. A total of over $6 billion in inflows has been recorded, with a strong recent increase observed. Fidelity and Ark Invest 21Shares have been particularly prominent in this aspect. With significant increases in inflows into their respective funds.
However, this growth has coincided with a decline in assets of Grayscale’s converted GBTC fund. Since its launch in January, the fund has experienced a 28% decline in holdings, suggesting a shift in investor preference towards newly launched ETFs.
Despite the decrease in GBTC fund assets, fund outflows have also significantly reduced, indicating lower selling pressure from investors. This could be interpreted as a sign that investors are adopting a long-term holding strategy for their Bitcoin investments, either through ETFs or funds like GBTC.
