Bitcoin ETFs buy 95,000 BTC as assets under management hit $4 billion

The “Newborn Nine” Bitcoin ETFs have collectively amassed 95,000 BTC, with collective assets under management (AUM) nearing $4 billion, according to available data.

According to Bloomberg ETF analyst Eric Balchunas, this remarkable inflow of capital highlights the growing investor appetite for digital assets and the increasing acceptance of cryptocurrencies in mainstream finance.

Balchunas pointed out that most ETFs typically experience a drop in trading volume each day after launch. However, the Newborn Nine have continued to post record volume, with the fifth day of trading seeing a 34% increase in volume.

$1B club

BlackRock's IBIT and Fidelity's FBTC have led the pack in growth. Both funds have seen substantial inflows of over $1.2 billion each within this short period and each of them holds a little over 30,000 Bitcoin.

While Fidelity's FBTC has slightly higher inflows, BlackRock's IBIT leads in AUM, holding $1.4 billion compared to Fidelity's nearly $1.3 billion.

Other notable ETFs include Invesco's ETF, which had its best day on Jan. 19, attracting over $63 million, though its total AUM hasn't surpassed $200 million. VanEck's ETF has shown similar performance and broke the $100 million mark in AUM on day six of trading.

Meanwhile, Valkyrie Investments and Franklin Templeton's AUM stood at $71.7 million and $48.6 million, respectively, on Jan. 19. WisdomTree has yet to break the $10 million mark.

Grayscale outflows

This substantial capital influx into the newly launched Bitcoin ETFs has outpaced the outflows from the Grayscale Bitcoin Trust (GBTC), which saw its AUM decrease by $2.8 billion in the same period.

GBTC has seen a reduction in its spot Bitcoin shares, amounting to a loss of $1.62 billion in the first four days. This suggests a shift in investor preference towards the new ETFs, which offer regulatory clarity and ease of access.

Despite the volatile nature of Bitcoin, which saw a sell-off in the same period, these ETFs have been successful. This success is partly attributed to redirecting outflows from GBTC to these new spot Bitcoin ETFs.