Recently approved in the United States, Bitcoin ETFs are enjoying dazzling success. In just ten days of trading, these new products have collectively amassed more than 150,000 BTC, or nearly $7 billion in assets.
The express takeoff of the new spot Bitcoin ETFs
After years of waiting, the American stock market policeman ended up authorizing the launch of the first Bitcoin ETFs in 2024.
Their rise is spectacular! In less than 3 weeks, they total more than 150,000 BTC in assets under management. Yesterday alone, they saw net inflows exceeding $1 billion, according to BitMEX Research.
These figures demonstrate the growing interest of investors in this new tool. They praise its simplicity of purchase, identical to any stock listed on the stock exchange. Billions are flocking to this new gateway to Bitcoin.
BlackRock and Fidelity in pole position
Among the recently launched Bitcoin ETFs, two clearly stand out. The “IBIT” of BlackRock, the world leader in asset management, alone holds 56,621 BTC, or $2.5 billion. It just surpassed Canadian ETFs combined.
Just behind, Fidelity’s “FBTC” displays 51,064 BTC under management. Between them, these behemoths control most of the 150,000 BTC accumulated by the new American ETFs. Their striking power commands respect.
Yesterday, BlackRock’s IBIT saw $208 million in net inflows. Same enthusiasm for Fidelity’s FBTC, with 198 million injected in one day. Investor confidence in these products is reflected in massive contributions.
The decline of Grayscale, fallen giant of Bitcoin products
This resounding burst of Bitcoin ETFs is very bad news for Grayscale and its famous Grayscale Bitcoin Trust (GBTC). For a long time quasi-monopolistic, this investment vehicle is undergoing massive erosion.
Its market share in processed volumes has fallen to just 36%, compared to nearly 64% at the start of 2023. Its daily net outflows often exceed $300 million. The juggernaut is bleeding profusely in the face of competition from new generation ETFs.
Certainly, Grayscale remains essential with its 497,000 BTC under management. But the trend is strong. Now, investors mainly favor the simplicity of Bitcoin ETFs.
The irresistible rise of spot Bitcoin ETFs marks a milestone in the democratization of cryptocurrency. These products offer unparalleled accessibility to traditional investors, as evidenced by the 150,000 BTC in assets accumulated in less than 3 weeks.
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