Bitcoin ETFs Hit $10B Milestone Just One Month After Approval

The recently launched Bitcoin exchange-traded funds (ETFs) have reached $10 billion in assets under management (AUM) within their first month.


Spot Bitcoin ETFs Reach $10B AUM

The recently launched spot Bitcoin exchange-traded funds (ETFs) completed their first 20 trading sessions hitting the $10 billion milestone in assets under management (AUM).

According to data from BitMEX Research, net flows for the nine ETFs reached $2.7 billion on Jan. 9, led by BlackRock's IBIT fund, which currently holds $4 billion worth of Bitcoin. Fidelity’s FBTC is in the second position, holding over $3.4 billion in BTC under management.

ARK 21Shares’ fund also reached the billion-dollar milestone, holding about $1 billion worth of Bitcoin in its portfolio. Meanwhile, Grayscale’s GBTC had outflows of $6.3 billion over the past 30 days, with $51.8 million in outflows on Feb. 9.

Bitcoin ETF Flows Expected to Increase

Over the next few months, Bitcoin ETF flows are expected to increase as trading firms complete their due diligence on the investment vehicles.

Bitcoin’s price consolidated above technical support in January, and ARK Invest predicts that Bitcoin will continue to replace gold as a risk-off asset. According to their analysis, Bitcoin’s price relative to gold has increased twenty-fold in the last 7 years. They believe this trend will continue as Bitcoin increases its role in financial markets.

Considering the macroeconomic environment, ARK Invest also predicts that Bitcoin will remain antifragile as banks continue to lose deposits.

SEC Approval of Bitcoin ETF Applications

The U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETF applications from several companies on Jan. 10, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale.

This approval comes more than a decade after the Winklevoss twins applied to launch the Winklevoss Bitcoin Trust in 2013.