$10B Milestone: Bitcoin ETFs Achieve Rapid Growth Post-Approval

The newly launched Bitcoin exchange-traded funds (ETFs) have reached a significant milestone, with total assets under management (AUM) hitting $10 billion after just 20 trading sessions. Data from BitMEX Research shows that the nine ETFs have seen net flows of $2.7 billion, with BlackRock’s IBIT fund leading the way with $4 billion worth of Bitcoin. Fidelity’s FBTC is in second place with over $3.4 billion in BTC under management. ARK 21Shares’ fund has also reached the billion-dollar milestone, holding approximately $1 billion worth of Bitcoin. Grayscale’s GBTC has seen outflows of $6.3 billion in the past 30 days, with $51.8 million being withdrawn on Feb. 9.

Despite the outflows from Grayscale’s GBTC, other Bitcoin ETFs are growing stronger. Bloomberg analyst Eric Balchunas commented on this, noting that he expected the other ETFs to weaken as GBTC outflows decreased, but they have actually become stronger. As trading firms conduct their due diligence on the investment vehicles, it is expected that Bitcoin ETF flows will increase in the coming months.

Bitcoin’s price has also shown signs of consolidation and strength. It has stayed above key technical support levels, such as its 200-day moving average ($29,902) and on-chain mean ($33,487), according to analysis from ARK Invest. Over the month of January, the price of Bitcoin rose by 0.6% to reach $42,585. ARK Invest believes that Bitcoin is replacing gold as a risk-off asset and points out that Bitcoin’s price relative to gold has increased significantly over the past seven years.

With regards to the macroeconomic environment, ARK Invest predicts that Bitcoin will remain resilient as banks continue to lose deposits. They believe Bitcoin will remain antifragile as inflation cools and real rates rise. This positive outlook on Bitcoin’s role in financial markets has gained support from the U.S. Securities and Exchange Commission (SEC), which recently approved Bitcoin ETFs from various companies, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale. This approval comes over a decade after the Winklevoss twins first applied to launch a Bitcoin ETF in 2013.