Bitcoin ETFs buy 95,000 BTC as assets under management hit $4 billion

Bitcoin ETFs have recently acquired 95,000 BTC, resulting in their total assets under management (AUM) reaching $4 billion. This influx of capital highlights the increasing interest in digital assets and the growing acceptance of cryptocurrencies in mainstream finance. Typically, ETFs experience a decrease in trading volume after their launch, but the “Newborn Nine” ETFs have continued to attract record volume, with a 34% increase in volume on the fifth day of trading. BlackRock’s IBIT and Fidelity’s FBTC have witnessed significant growth, with over $1.2 billion inflows each, holding just over 30,000 Bitcoin each. BlackRock’s IBIT currently leads in AUM with $1.4 billion, while Fidelity’s FBTC follows closely behind with nearly $1.3 billion. Other notable ETFs, such as Invesco’s and VanEck’s, have also shown promising performance in terms of AUM. In contrast, the Grayscale Bitcoin Trust (GBTC) has experienced outflows, with $2.8 billion decrease in AUM within the same period. These outflows signify a shift in investor preference towards the new ETFs, which offer regulatory clarity and easy accessibility. Despite Bitcoin’s volatile nature and a recent sell-off, these ETFs have proven to be successful, partly due to redirecting outflows from GBTC.