It has been an incredibly successful start for the newly approved spot Bitcoin exchange-traded funds (ETFs), as they amassed a substantial number of bitcoins and saw a significant increase in assets under management (AUM) within their first six days of trading. This article analyzes the impressive performance of these ETFs, highlighting the volume of bitcoins accumulated and the assets held by each fund.
The Newborn Nine and their Bitcoin Holdings
Data shared by Eric Balchunas, senior ETF analyst at Bloomberg, reveals that the “Newborn Nine” has collectively accumulated over 95,297 BTC since the commencement of trading on January 11, 2024. Adding this to the holdings of the Grayscale Bitcoin Trust (GBTC), a total of 647,374 BTC is currently held by the ETFs.
Among the Newborn Nine, BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with 33,706 BTC, followed closely by Fidelity Wise Original Bitcoin Fund (FBTC) with 30,384 BTC. In third place is Bitwise (BITB), holding 10,235 BTC, followed by Ark Invest/21 Shares’s ARKB with 9,134 BTC, and Invesco’s BTCO with 6,192 BTC. The remaining three funds, namely VanEck Bitcoin Trust (HODL), Valkyrie Bitcoin Fund (BRRR), and Franklin Templeton’s EZBC, have accumulated 2,566 BTC, 1,726 BTC, and 1,169 BTC, respectively. The WisdomTree Bitcoin Fund (BTCW) holds the smallest amount of assets, currently sitting at 182 BTC.
It is worth noting that GBTC, which has been in existence since 2013 and recently converted into an ETF, holds an impressive 552,077 BTC, making it the Bitcoin ETF with the largest BTC holdings. Despite recording $590 million in outflows on Friday, GBTC has been overwhelmed by the substantial inflows of IBIT, FBTC, BTCO, and HODL, resulting in their “best hauls to date.”
Net Flows and Assets Under Management
The total net flows of the Newborn Nine currently stand at approximately $1.2 billion, with an AUM approaching $4 billion. On the other hand, GBTC’s AUM has increased to $2.8 billion, now accounting for a 14% share. Balchunas speculates that only a small portion of the outflows from GBTC are being directed towards the new ETFs. He suggests that a significant portion previously belonged to FTX, a bankrupt cryptocurrency exchange, and some traders. Nevertheless, the flows to the ETFs seem to be proportionate to the size of each firm, indicating that such flows are driven by reach, distribution, and hustle.
The success of the Bitcoin ETFs during their first week of trading has been truly remarkable. The Newborn Nine, along with GBTC, have accumulated a significant number of bitcoins and have seen substantial inflows in terms of assets under management. This early success bodes well for the future of these ETFs and further establishes Bitcoin as a mainstream investment option.
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