Bitcoin ETF Issuers Expand Holdings Amid Rising Trade Volumes, Regardless of Bitcoin's Slight Decline
Summary:
Bitcoin exchange-traded fund issuers have reportedly added a net 10,667 Bitcoins to their holdings in the first five days of trading amid increasing transaction volumes. BlackRock's ETF accounted for most of this, gaining a net 8,700 Bitcoins—worth nearly $358 million. Meanwhile, asset managers like Bitwise have also increased their holdings, with the firm reporting an addition of 491 Bitcoins on January 18. At the same time, the Grayscale Bitcoin Trust (GBTC) is seeing continued outflows, selling off around 10,824 Bitcoins. Investors' strong interest has led BlackRock and Fidelity's Bitcoin ETFs to accumulate over $1 billion in assets under management. Despite these developments, Bitcoin's value has seen a slight decline over the past days.
Cryptocurrency companies that offer Bitcoin exchange-traded funds (ETFs) have garnered an additional 10,667 Bitcoins in their reserves during the first five days of trading, amid rising transaction volumes. CC15Capital accumulated the data unveiled on January 17, which divulged a net increase of $440 million worth of Bitcoins in these companies' holdings by the end of the day. BlackRock's ETF was responsible for most of this increment, obtaining a net gain of 8,700 Bitcoins—equivalent to nearly $358 million. The information also revealed that a total of nine ETFs (excluding Grayscale) have acquired nearly 68,500 Bitcoins, approximately worth $2.8 billion since they were launched. This buying spree was counterbalanced by Grayscale Bitcoin Trust's (GBTC) ongoing outflows, as it offloaded around 10,824 Bitcoins, valued around $445 million. Approximately 38,000 Bitcoins have exited GBTC since it was converted to a spot ETF on January 11.
In the meantime, Bloomberg ETF analyst Eric Balchunas showed data which highlighted that the new nine Bitcoin ETFs termed as "Newborn Nine," excluding GBTC, experienced a 34% surge in daily trading volume during the fifth day of trading. Noteworthy is the fact that the Bitcoin buying data released by ETF managers are often delayed due to purchase settlement lags.
Investors enthusiasm behind these new funds has led to Bitcoin ETFs from companies like BlackRock and Fidelity to have amassed over $1 billion in assets under management by the close of January 18's trading, according to Bloomberg ETF analyst James Seyffart.
Furthermore, Balchunas indicated that BlackRock and Fidelity’s Bitcoin ETFs hold the fourth and fifth-place for weekly funds influx across all U.S. ETFs. These are only exceeded by the Vanguard 500 Index Fund ETF, which targets to replicate the returns of the S&P 500—comprising the top 500 U.S. publicly traded firms.
Lastly, CC15Capital reported on January 19 that, up until then, Bitwise was the sole asset manager to disclose its Bitcoin holdings for January 18—detailing it had added an extra 491 Bitcoins on that day. This comes right as Bitcoin observed a less than 1% drop on January 17, but experienced more than a 3.5% plunge in the preceding 24 hours.
Published At
1/19/2024 9:00:27 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.