Spot Bitcoin ETFs Surpass $10 Billion AUM Milestone in Just One Month of Trading, Despite GBTC Outflows
Crypto News – Spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, surpassing $10 billion in assets under management (AUM) within just one month of their launch. These 30-day-old products continue to attract substantial interest from investors.
Since their inception on January 11, Bitcoin ETFs have witnessed a notable $2.8 billion in net inflows. The majority of approved ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, have experienced consistent inflows since their debut.
However, Grayscale Investments’ recently converted ETF, the Grayscale Bitcoin Trust (GBTC), has been an exception, consistently recording outflows over the last 22 trading sessions. This trend is likely due to investors reallocating their capital from GBTC to ETFs with more competitive fee structures, given Grayscale’s steady 1.5% holding fees.
Nevertheless, on February 9, the sell pressure on GBTC seemed to alleviate, with outflows reaching $51.8 million—marking the lowest level since its transition to an ETF.
Analysts, including Bloomberg ETF expert Eric Balchunas, observed that despite GBTC’s subsiding outflows, other ETFs such as IBIT, FBTC, and ARKB continued to attract substantial inflows. The combined inflows of these three funds amounted to $573 million, with ARKB joining the league of funds surpassing $1 billion in AUM.
Simultaneously, the price of Bitcoin surged by 13% over the past week, trading around $48,129 at the time of reporting. Observers in the industry, like the renowned crypto commentator WhalePanda, likened this trend to a flywheel effect, where higher prices lead to increased ETF inflows, further driving positive price action.
WhalePanda expressed optimism about surpassing the $50,000 mark soon, anticipating continued inflows into ETFs. With a net inflow of $1.2 billion for the week and an average of approximately $200 million per day, there is optimism about surpassing previous all-time highs before the halving event.
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