As per the latest report, spot Bitcoin ETFs listed in the United States recently completed a $10 billion milestone as of 9th February, 2024. The report accounted for the Bitcoin ETFs that were approved on 10th January this year. This report has arrived after the spot ETFs have completed the first 20 rounds of trading sessions hitting a new threshold of $10 billion in assets under management.
The article has quoted the research conducted by BitMEX that indicates that 9 ETFs accomplished a net flow of $2.7 billion with BlackRock’s iShares Bitcoin Trust leading the way.
iShares Bitcoin Trust Now Holds $4 Billion in Bitcoin
The iShares Bitcoin Trust now boasts around $4 billion in reserves. Coming in second is Fidelity’s Wise Origin Bitcoin Trust printing around $3.4 billion of Bitcoin under management.
The spot Bitcoin ETF listing by Ark Invest and 21Shares ranks at the next top position with $1 billion of Bitcoin added to its portfolio. However, Grayscale one of the biggest Bitcoin Trusts reported $6.3 billion in outflows for the last month.
The fund recorded $51.8 million in outflows for the same duration. This outflow accounts for the economical withdrawals in daily volume since its listing as a spot Bitcoin ETF.
Bloomberg analyst, Eric Balchunas, remarked that the expectation of other spot Bitcoin ETF listings growing weaker is now subverted in the event of outflows from GBTC. He noted that the new listings have consolidated earnings.
Rise of Bitcoin ETF Inflows
During the last few months, Bitcoin ETF inflows have continued to report inflows after various trading firms added them to their portfolio following the due diligence process. Bitcoin prices increased over the technical support in January with a 200-day MA ($29,902) and on-chain average ($33,487) as per data projections shared by Ark Invest.
In the next 30 days, the price of the flagship cryptocurrency increased by 0.6%, reaching $42,585. Ark Invest has also projected that Bitcoin has overtaken gold as a risk-averse asset class. The firm has noted that Bitcoin prices in comparison to gold have increased by 20 times during the last 7 days.
The analysts have noted that investors can purchase 1 troy oz of gold in January, 2024 for the same price of 1 troy oz of gold in April, 2017. The firm noted that the trend is going to gain mainstream popularity provided that it continues its role to contribute to the financial markets.
Ark Invest also shared details regarding the macroeconomic factors. The analysts have noted that while inflation continues to drop, the real rates overtake; Bitcoin prices can remain stable while bank deposits decline.
Bitcoin ETF Listings and Spot Market Trading
Jason Warnick, CFO of Robinhood, noted during the Q4 2023 results that direct Bitcoin investments have continued to remain popular among investors. He was commenting on the impact of Bitcoin ETF listings on 13th February 2024.
On this account, the CFO noted that 5% of the account holders on the online trading platform invested in ETF shares while 95% of the investors continued direct Bitcoin trading.
The CFO further stated that the listing of Bitcoin ETFs is proven to be additive rather than draining impact. Warnick noted that some Bitcoin ETFs on Robinhood arrived from investors who added spot ETF shares to their retirement accounts.
Robinhood has listed all 10 spot Bitcoin ETF shares that were approved by the SEC on 10th January this year.
Meanwhile, Robinhood reported an increase in its overall Q4 earnings. The platform attributed the increment to the increase in the overall crypto trading volume that printed $4 million for the same duration noting an increase of 10% on a year-over-year scale.
The firm declared that for Q4, the overall crypto trading volume increased by 89% in comparison to the previous quarter. Additionally, the final quarter of last year also reported an increase in total account holders and aggregate trading volume.
