Bitcoin Spot ETFs Hit $10 Billion Milestone as Gold's Reign as Safe-Haven Asset Ebbs
Summary:
The newly-introduced Bitcoin spot exchange-traded funds (ETFs) have reached $10 billion in assets under management after the first 20 trading sessions. Notably, BlackRock's IBIT fund and Fidelity’s FBTC are among the prominent contributors. Conversely, Grayscale’s GBTC witnessed an outflow worth $6.3 billion in the last month. Future Bitcoin ETF flows are projected to increase as investment firms finish risk evaluations of these entities. Additionally, as Bitcoin begins to replace gold as a safe-haven asset, analysts predict its resilience against declining inflation and rising real rates.
Newly introduced Bitcoin spot exchange-traded funds (ETFs) have reached an impressive $10 billion in assets under management (AUM), after their initial 20 trading days. As per BitMEX Research, the influx of assets for these nine ETFs hit $2.7 billion on Jan. 9, with BlackRock's IBIT fund in the lead, holding $4 billion worth of Bitcoin (BTC). Fidelity’s FBTC trails slightly behind with $3.4 billion of BTC within their holdings. Other notable funds include ARK 21Shares’ fund housing $1 billion worth of Bitcoin. Conversely, Grayscale’s GBTC saw an outflow of $6.3 billion in the last month. On Feb. 9, GBTC marked its smallest daily departure of capital with $51.8 million. Eric Balchunas, a Bloomberg analyst, commented the strength of the Nine continues to grow despite the reduced GBTC outflows.
An upward trend in Bitcoin ETF flows is expected in the upcoming months as investment firms complete their risk assessments of these entities. In the wake of stabilize above its technical support in January, Bitcoin experienced a 0.6% increase in price to $42,585. This trend is attributed to an optimistic outlook from ARK Invest, suggesting Bitcoin is displacing gold as a safe-haven asset. ARK’s study points to the price of Bitcoin in relation to gold, which has surged twentyfold in the past seven years. The investment firm expects this trend to endure as Bitcoin's influence extends in financial markets.
In the context of macroeconomics, ARK Invest forecasts that as banks continue to lose deposits owing to the diminishing inflation and the rise of real rates, Bitcoin's resilience should remain unscathed. The U.S. Securities and Exchange Commission (SEC) gave the green light to Bitcoin ETF applications from companies including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale on Jan. 10. This comes more than ten years after the Cameron and Tyler Winklevoss first applied to initiate the Winklevoss Bitcoin Trust in 2013.
Published At
2/11/2024 12:56:04 AM
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