Investors are increasingly interested in Bitcoin-based investment products, especially in the United States. Four funds that track Bitcoin prices directly (spot Bitcoin ETFs) have set new records for inflows and assets in their first trading month.
According to BitMEX Research data, the US spot Bitcoin ETF received about $1.2 billion in assets last week. This amount is nearly double the $700 million in the previous week. This increase comes along with a slowdown in withdrawals from another largest Bitcoin investment product, Grayscale Bitcoin Trust (GBTC).
GBTC is a closed-end fund that allows investors to buy shares representing Bitcoin held by Grayscale. However, GBTC trades at a discount to its net asset value, meaning investors pay less for every Bitcoin they buy through GBTC.
Meanwhile, US spot Bitcoin ETFs allow investors to buy and sell stocks that reflect the price of Bitcoin in real time. The four US spot Bitcoin ETFs launched last October are:
- Wise Origin Bitcoin Fund (FBTC) from Fidelity Investments
- iShares Bitcoin Trust (IBIT) from BlackRock
- Ark 21Shares Bitcoin ETF (ARKB) from Ark Investment Management
- Bitwise Bitcoin ETF (BITB) from Bitwise Asset Management
These four funds have made history in the ETF industry. According to Bloomberg Intelligence analyst Eric Balchunas, no other ETF has reached the asset level reached by IBIT and FBTC within a month of its launch. IBIT and FBTC have grown to about $4.2 billion and $3.5 billion in assets as of Friday, Feb. 9.
ARKB and BITB also made the list of the top 25 asset aggregators in their first month. ARKB reached $1 billion in asset management, while BITB was at $860 million.
In addition to this rapid growth, these four segment flow leaders have also seen daily net inflows during their first trading month. Balchunas called this phenomenon "absolutely unprecedented."
Analyst Compares Bitcoin Spot ETF with Gold Shares (GLD)
Some analysts have compared the US spot Bitcoin ETF to the largest physically-backed commodity ETF: SPDR Gold Shares (GLD) from State Street Global Advisors, which was launched in 2004. However, ETF.com data shows that GLD only saw a net positive flow for eight days in its first trading month.
"The continued demand we're seeing in Bitcoin ETFs is tremendous," Matt Hougan, Bitwise's chief investment officer, wrote in a blog post.
Overall, global crypto investment products generated $1.1 billion in net inflows last week, according to CoinShares data. These inflows were driven by $1.2 billion going into the US spot Bitcoin ETF. Meanwhile, expenses borne by GBTC were reduced to about $415 million last week — down from $927 million the previous week.
Matteo Greco, a research analyst at Fineqia International, observed a significant decrease in daily spending from GBTC. Initially, when it began trading as an ETF, it outlay about $500 million over the first two weeks. Last week, this figure dropped to around $83 million, marking a drop of nearly 85%.
"The significant decline in GBTC spending began on Jan. 26, along with the start of consistent inflows into spot Bitcoin ETFs, resulting in 11 consecutive days of net inflows," he wrote in a research note Monday.
Declining spending from GBTC and assets continuing to enter U.S. spot Bitcoin ETFs have been drivers of Bitcoin's recent price appreciation, Greco added.
The price of Bitcoin (BTC) was at around $48,700 at 10 a.m. eastern time on Monday — up 12.5% from the previous seven days.
How to Buy Crypto on Bittime
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To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
What are the 11 Bitcoin ETFs approved by the SEC
VanEck: ETF Pioneer & His Work for Bitcoin ETFs
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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