Bitcoin

Grayscale Bitcoin Trust

<p>Bitcoin exchange-traded funds (ETFs) have continued to attract significant investor attention as they amass more Bitcoin holdings and assets under management (AUM). The recent data indicates a surge in interest in these investment vehicles, with BlackRock and Fidelity’s Bitcoin ETFs leading the way regarding AUM and weekly capital inflows.</p>
<h2 class="wp-block-heading" id="growing-bitcoin-holdings">Growing Bitcoin holdings</h2>
<p>A recent report compiled by X account CC15Capital <a href="https://twitter.com/EricBalchunas/status/1748101735552299510" rel="noopener noreferrer nofollow" target="_blank">revealed</a> that Bitcoin ETF issuers collectively added a net total of 10,667 Bitcoin to their cryptocurrency portfolios within just five days of trading. This substantial addition amounted to approximately $440 million in Bitcoin holdings at the end of the trading day.</p>
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   <p lang="en" dir="ltr">30,496 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#Bitcoin</a> was bought since ETF Launch.<br><br>Excluding <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$GBTC</a> (selling driven by high fees vs others), the 9 ETFs bought 68,442 <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$BTC</a> – a staggeringly large number.<br><br>Only 900 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#Bitcoin</a> is mined daily (dropping to 450/day in April)</p>— CC15Capital 🇺🇸 (@Capital15C) <a href="https://twitter.com/Capital15C/status/1748122633260933246?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">January 18, 2024</a>
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<p>BlackRock’s Bitcoin ETF emerged as the frontrunner in this accumulation, acquiring 8,700 BTC, equivalent to nearly $358 million in value. This strong showing solidified BlackRock’s position as a major player in the cryptocurrency investment space.</p>
<p>Since the launch of Bitcoin ETFs, excluding Grayscale, nine ETFs have collectively purchased close to 68,500 BTC, valued at approximately $2.8 billion. This highlights the growing interest and trust investors place in these ETFs to gain exposure to the cryptocurrency market.</p>
<p>While Bitcoin ETFs experienced a surge in net purchases, the Grayscale Bitcoin Trust (GBTC) faced continued outflows, shedding a total of 10,824 BTC, equivalent to around $445 million.&nbsp;</p>
<p>Since its transformation into a spot ETF on January 11, Grayscale has seen nearly 38,000 BTC leave its holdings. This trend contrast suggests a shift in investor sentiment towards ETFs as a preferred vehicle for gaining Bitcoin exposure.</p>
<h2 class="wp-block-heading" id="impressive-trading-volumes-and-performance">Impressive trading volumes and performance</h2>
<p>The data also reveals that the “Newborn Nine,” a term coined by Bloomberg ETF analyst Eric Balchunas to refer to the new spot Bitcoin ETFs excluding GBTC, experienced a remarkable 34% increase in daily trading volume on their fifth day of trading. This surge in trading volume defied the typical post-launch decline, indicating sustained investor interest and confidence in these ETFs.</p>
<p>Balchunas further pointed out that BlackRock and Fidelity’s Bitcoin ETFs now rank fourth and fifth in weekly capital inflows among all U.S. ETFs. They trail only the Vanguard 500 Index Fund ETF (VOO), which aims to mirror the returns of the S&amp;P 500, comprising the 500 largest publicly traded U.S. companies.</p>
<p>In a recent development, Bitwise emerged as the first asset manager to report its Bitcoin holdings for January 18. According to reports, Bitwise added another 491 BTC to its holdings that day, amounting to over $20 million. Bitwise CEO Hunter Horsley expressed gratitude for the trust placed in the company to manage clients’ assets, signaling their commitment to growing their Bitcoin holdings.</p>

Bitcoin ETFs accumulate more assets amid growing investor interest

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