Spot Bitcoin ETFs have crossed the $10 billion milestone within a month of US SEC approval. The development makes January of 2024 the biggest inaugural month for an ETF over the past three decades.
The US SEC approved spot Bitcoin ETFs last month in a groundbreaking decision. Everything seems to be going well for the funds, as recently they crossed over $10 billion in AUM or assets under management. After their approval, spot bitcoin ETFs from BlackRock and Fidelity soon rose and ranked within the top 10 overall ETFs. They also secured the largest investments during their first month.
Just the two BTC ETFs received $5 billion in inflows in January. This was a significant amount considering the SEC approved the ETFs on January 10.
Securing Groundbreaking AUM
BlackRock’s iShares Bitcoin Trust (IBIT) offering has a current AUM of $4 billion. Fidelity’s Wise Origin Bitcoin Fund (FBTC) holds $3.4 billion in Bitcoin AUM.
On the other hand, ARK 21 Shares’s spot BTC ETF secured $1 billion worth of AUM. ARK21 Shares and Bitwise’s BTC ETFs ranked 20th and 22nd in the overall ETF rankings of the month.
It is worth noting that spot BTC ETFs’ debut made January of 2024 the biggest inaugural month for an ETF in the US’s past 30 years.
There is another BTC ETF worth sharing information about. ProShares Bitcoin Strategy ETF is a futures-based product first introduced in 2021. It has had been ranking seventh recently in terms of AUM. This data was released by BitMEX Research.
Bitcoin ETF inflows are expected to grow significantly in the near future. This is a clear market perception, as most trading companies are currently busy collecting and analyzing relevant information.
Bitcoin’s Price Consolidation
Bitcoin consolidated its price in December and January after a long time. The US SEC’s decision to allow spot BTC ETFs and Japan’s major crypto asset tax reforms have played an important role in bringing this price stability.
Bitcoin’s on-chain mean and 200-day moving average have also consolidated. Market insight experts claim BTC is making some inroads in gold’s domain as a risk-off asset. BTC’s price grew 20X over gold’s price over the past 7 years.
It is believed that Bitcoin’s role in financial markets will continue to grow.
There are also reports that Fidelity has had also been working on an Ethereum offering. However, the SEC postponed a decision on it. The commission has sought 45 more days to explore the concerns raised and rule changes.
Resources: Cointelegraph, Binance, Zacks
