The freshly introduced spot Bitcoin exchange-traded funds (ETFs) have wrapped up their inaugural 20 trading sessions, attaining the £10 billion milestone in assets under management (AUM).
As per figures from BitMEX Research, net flows for the nine ETFs hit £2.7 billion on Jan. 9, led by BlackRock’s iShares Bitcoin Trust, presently holding Bitcoin (BTC) valued at £4 billion.
The runner-up is Fidelity’s Wise Origin Bitcoin Fund, managing over £3.4 billion in BTC.
The ARK 21Shares Bitcoin ETF has also crossed the billion-pound milestone, housing approximately £1 billion worth in its portfolio.
In contrast, Grayscale Bitcoin Trust (GBTC) has seen outflows of £6.3 billion over the past 30 days, with £51.8 million in outflows recorded on Feb. 9, marking its lowest daily volume of capital withdrawals since conversion.
“I thought the Nine would get a bit weaker as GBTC outflows subsided but they’re getting stronger,” remarked Bloomberg analyst Eric Balchunas on X.
Invesco experienced an outflow, becoming the first non-GBTC product to do so.
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Over the forthcoming months, Bitcoin ETF flows are anticipated to surge as trading firms conclude their due diligence on the investment vehicles.
Bitcoin’s price stabilised above technical support in January, “including its 200-day moving average (£29,902) and on-chain mean (£33,487),” according to a recent analysis from ARK Invest.
Throughout the month, the cryptocurrency price increased by 0.6% to £42,585.
ARK Invest’s bullish perspective suggests that Bitcoin is supplanting gold as a risk-off asset. “Bitcoin’s price relative to that of gold has increased twenty-fold in the last 7 years.
In January 2024, Bitcoin could buy ~20 troy oz of gold, compared to 1 troy oz in April 2017,” notes the analysis. “We believe this trend should continue as Bitcoin increases its role in financial markets.”
Given the macroeconomic context, the asset manager foresees that “as inflation cools and real rates rise, Bitcoin should remain antifragile as banks continue to lose deposits.”
The United States Securities and Exchange Commission (SEC) authorised Bitcoin ETF applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock and Grayscale on Jan. 10, over a decade after Cameron and Tyler Winklevoss applied to launch the Winklevoss Bitcoin Trust in 2013.
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