Spot Bitcoin ETFs have had a significant impact on the financial world, attracting massive inflows and pushing Bitcoin prices to current levels. highest level Over two years ago, after briefly touching the $50,200 mark, the price currently stands at $49,900.
According to Bloomberg ReportThe ETFs have achieved “unparalleled success” on trading measures, attracting billions of dollars in net inflows in just one month after their historic launch.
Bitcoin ETF receives $2.8 billion in net inflows
Data compiled by Bloomberg Intelligence show that Bitcoin spot funds have accumulated net inflows of approximately US$2.8 billion in the first quarter. 21 trading days.
This figure takes into account the $6.4 billion withdrawn from the Grayscale Bitcoin Trust (GBTC) following its transition to an ETF. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) have emerged as frontrunners, attracting inflows of approximately $3.8 billion and $3.1 billion respectively.
According to the report, both funds crossed the $1 billion threshold in five days or less, making them the only funds to surpass $3 billion in their first 20 days of trading.
Although initially sales news The success of the Bitcoin ETF has pushed the price of Bitcoin to its highest point in more than two years. Jane Edmondson, head of thematic strategy at TMX VettaFi, told the news outlet that any ETF that accumulates more than $100 million in assets in a month is successful. However, the long-term economic viability of all these funds remains to be seen.
BlackRock and Fidelity dominate trading volumes
Notably, Bloomberg noted that while IBIT and FBTC are leading the pack, other Bitcoin ETFs have also experienced varying degrees of inflows.
The Bitwise Bitcoin ETF (BITB) and the ARK 21Shares Bitcoin ETF (ARKB) attracted approximately $786 million and $918 million, respectively.Franklin Bitcoin ETF (EZBC) Despite having lowest fee among the group. Likewise, WisdomTree Bitcoin Fund (BTCW) also invested $15 million. Still, overall inflows into these ETFs continue to remain strong.
The high trading volumes of BlackRock and Fidelity funds, which have each traded more than $6 billion in stocks since their inception, underscore the ease of trading assets under the ETF structure. This further strengthens long-term investor demand for Bitcoin funds.
However, according to Bloomberg, although these Bitcoin ETFs have been opened to the public, some institutions still have reservations.
LPL Financial, a manager of trillions of dollars of capital, needs further proof that ETFs are suitable for its trading platform and guarantees that the selected funds will not be terminated.
Even legacy firm Vanguard Group Inc. doesn’t offer new ETFs on its massive trading platform. However, experts expect interest and traffic to increase once these ETFs gain wider acceptance and familiarity among investors.
On average, Bitcoin ETFs have left an indelible mark on the market. financial landscapeIt attracted billions of dollars in inflows within a month of its launch. The success of these ETFs, led by BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, has not only boosted investor confidence but also pushed the price of Bitcoin to a 26-month high.
While the performance of other Bitcoin ETFs has varied, the overall market reaction has been positive. As these ETFs gain further attention and acceptance, interest and investment are expected to continue to grow, shaping the future of cryptocurrencies in traditional finance.
Featured image from Shutterstock, chart from TradingView.com