In a major milestone, spot Bitcoin ETFs, within merely 20 days following their market debut, have accumulated $10 billion in assets under management (AUM), illustrating the strong investor enthusiasm for this new investment avenue.
At the forefront of the surge are BlackRock’s iShares Bitcoin Trust IBIT and Fidelity’s Wise Origin Bitcoin Fund FBTC, with impressive AUM of $4 billion and $3.4 billion, respectively. These were followed by ARK 21Shares Bitcoin ETF ARKB, which crossed the $1 billion threshold as of Feb 10, and Bitwise Bitcoin Fund BITB, which has accumulated $693.4 million since its debut last month. Meanwhile, the Grayscale Bitcoin Trust GBTC has seen a deceleration in outflows, recording its minimal daily withdrawal on Feb 9 (read: Out of 11 New Bitcoin ETFs, Which Looks Best Fit for Investors?).
This surge in ETF activity signals a growing trend of institutional investment in Bitcoin as the launch of spot ETFs has made it easier for investors to gain exposure to Bitcoin without directly owning the asset. Caroline Bowler, CEO of BTC Markets Pty, noted on Bloomberg Television the “increasing movement of institutional money into the asset class.” Analysts are optimistic about further growth.
Spot Bitcoin ETFs are considered to be a game changer for cryptocurrency investors. ARK Invest, renowned for its optimistic outlook, envisions Bitcoin as a potential successor to gold as a secure asset, forecasting continued value growth driven by its increasing integration into the financial ecosystem. It argues that Bitcoin’s resilience to economic uncertainties like inflation and interest rate hikes positions it favorably in the current economic environment.
The anticipation of Bitcoin’s upcoming halving event in April is also influencing the cryptocurrency market. Halving, which reduces the reward for mining new blocks, has historically been seen as a positive catalyst for Bitcoin’s price. Moreover, the Lunar New Year holidays, currently celebrated in Asia, are contributing to a generally positive sentiment toward Bitcoin, according to Fundstrat Global Advisors.
Bolstered by the unprecedented success of the ETFs, the cryptocurrency Bitcoin is on the brink of achieving its longest streak of daily gains in a year. The cryptocurrency is poised for the seventh straight daily gain that would mark the longest such streak since January 2023 if the advance holds as of Feb 12, as data compiled by Bloomberg (read: Bitcoin ETFs Make Historic Debut With $4.6B in Trading).
Let’s delve into the abovementioned ETFs in detail:
iShares Bitcoin Trust (IBIT)
iShares Bitcoin Trust seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. However, the fee is set to be 0.12% for the first 12 months or on the first $5 billion in assets (read: Bitcoin ETFs Are Almost Here: What Investors Should Know).
Fidelity Wise Origin Bitcoin Trust (FBTC)
Fidelity Wise Origin Bitcoin Trust offers exposure to the price of bitcoin — without buying bitcoin directly — in brokerage, trust, and tax-advantaged accounts. The entire fee of 0.25% has been waived until Jul 31, 2024. It trades in an average daily volume of 9.3 million shares.
ARK 21Shares Bitcoin ETF (ARKB)
ARK 21Shares Bitcoin ETF seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant. It has an expense ratio of 0.21%, with the fee set to be 0% for the first six months or the first $1 billion in assets. ARKB trades in a volume of 3 million shares per day on average.
Bitwise Bitcoin ETF (BITB)
The Bitwise Bitcoin ETF invests directly in Bitcoin and is easily accessible from a brokerage account. It has the lowest fees among the spot Bitcoin ETFs at 0.20%. The fee is set to be 0% for the first six months or the first $1 billion in assets. Bitwise Bitcoin ETF trades in an average daily volume of 2.4 million shares.
Grayscale Bitcoin Trust (GBTC)
Grayscale Bitcoin Trust is the world’s largest Bitcoin ETF, charging 1.50% in annual fees. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody.
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Grayscale Bitcoin Trust ETF (GBTC): ETF Research Reports
iShares Bitcoin Trust (IBIT): ETF Research Reports
Fidelity Wise Origin Bitcoin Fund (FBTC): ETF Research Reports
ARK 21Shares Bitcoin ETF (ARKB): ETF Research Reports
Bitwise Bitcoin ETF (BITB): ETF Research Reports