Among the newly launched nine Bitcoin ETFs, BlackRock and Fidelity’s ETFs have witnessed inflows northwards of $1.2 billion each.
The collective assets under management (AUM) for the recently launched “Newborn Nine” Bitcoin exchange-traded funds (ETFs) have reached a significant milestone, amassing a total of 95,000 BTC, equivalent to nearly $4 billion, according to available data.
Bloomberg ETF analyst Eric Balchunas emphasizes the noteworthy inflow of capital into these ETFs, highlighting the increasing investor appetite for digital assets and the growing acceptance of cryptocurrencies in mainstream finance.
Note: the more we think about it and talk to ppl, prob only a small minority of the GBTC outflows are likely going to the Nine right now as much of it was FTX and traders who arb-ed discount. Also the proportionality of the flows to the size of the firm is almost perfect,…
— Eric Balchunas (@EricBalchunas) January 20, 2024
In an industry where many ETFs experience a decline in trading volume after launch, the Newborn Nine has defied the trend. On the fifth day of trading, these ETFs witnessed a remarkable 34% increase in volume, with BlackRock’s IBIT and Fidelity’s FBTC leading in growth.
BlackRock’s IBIT and Fidelity’s FBTC have attracted substantial inflows of over $1.2 billion each within this brief period, holding slightly over 30,000 Bitcoin each. While Fidelity’s FBTC has a slightly higher inflow, BlackRock’s IBIT leads in AUM, holding $1.4 billion compared to Fidelity’s nearly $1.3 billion.
Other notable ETFs in the group include Invesco’s ETF, which experienced its best day on January 19, drawing over $63 million, although its total AUM has not yet surpassed $200 million. VanEck’s ETF has demonstrated similar performance, crossing the $100 million mark in AUM on the sixth day of trading.
As of January 19, Valkyrie Investments and Franklin Templeton’s AUM stood at $71.7 million and $48.6 million, respectively. WisdomTree has yet to surpass the $10 million mark in AUM. The success and growth of these Newborn Nine ETFs underscore the expanding influence of cryptocurrency in traditional financial markets.
Bitcoin Price Dips Under $41,000
While on one hand, the “nine” Bitcoin ETFs see significant inflows, the bitcoin price continues to face selling pressure. As of press time, the Bitcoin price has dropped by another 2% slipping under $41,000.
In a recent analysis by On-Chain College, the Bitcoin 111-day moving average takes center stage as the primary short-term indicator in the Pi Cycle analysis. The analyst has strategically overlaid it with the short-term holder cost basis for Bitcoin.
As Bitcoin undergoes its price fluctuations, close attention is given to the narrowing gap between these two indicators. The analysis suggests that in the event of further price declines, the $37.7K-$38.1K range becomes a critical level to monitor.
The Bitcoin 111 day moving average is the main short-term indicator used in the Pi Cycle analysis.
I overlapped it with the BTC short-term holder cost basis.
As BTC ranges, the gap between these two tightens.
$37.7K-$38.1K would be a level to watch should price fall further pic.twitter.com/Mq5dTnGGwz
— On-Chain College (@OnChainCollege) January 21, 2024
Furthermore, a major selling pressure on Bitcoins comes amid heavy selling by Grayscale following a strong sell-off in the GBTC shares. Also, the spot Bitcoin shares of GBTC have experienced a decrease, resulting in a loss of $1.62 billion within the initial four days. This indicates a change in investor preference towards emerging ETFs, characterized by regulatory clarity and enhanced accessibility.