As a researcher with years of experience studying the intricacies of financial markets, I find myself continually amazed by the dynamic nature of the Bitcoin ecosystem. The launch of the spot Bitcoin ETF in the US has undeniably been a game-changer, attracting billions in net inflows and fueling speculation that it could soon surpass physical gold ETF assets.
Spot Bitcoin ETF launch in the US has been one of the most successful ETF launches in Wall Street’s history, with net inflows soaring to $35.5 billion in less than a year of launch. However, asset manager Grayscale has been at the losing end witnessing a staggering $21 billion in less than a year. Just as Grayscale converted its Bitcoin Trust (GBTC) to a Bitcoin ETF in January, it has witnessed strong outflows in the subsequent months. As per the Farside Investors data, GBTC has lost a total of $89.9 million on daily average outflows.
As a crypto investor, I’ve noticed that although the 10 approved US Bitcoin ETFs are maintaining healthy balance sheets, the outflows from Grayscale’s GBTC have been quite significant, overshadowing the investments brought in by the other nine funds. For instance, if you exclude BlackRock’s IBIT and Grayscale’s GBTC, these remaining nine Bitcoin ETFs have collectively attracted a total of $20.73 billion in net inflows combined.
As an analyst, I’ve noticed one significant factor contributing to the value depreciation at Grayscale: their high management fees. In contrast, established asset managers such as BlackRock and Fidelity have gained traction by offering low management fees, which has drawn more investors towards them. Interestingly, despite launching a lower-fee mini-Bitcoin Trust (BTC), Grayscale failed to capture much interest in this area.
Conversely, BlackRock’s iShares Bitcoin Trust (IBIT) has outshone all other similar funds with a staggering $35.8 billion in investments since its start. This massive influx of money has pushed the total value of assets it manages (AUM) over the $50 billion mark, reflecting Bitcoin’s price stability above $100K. On average, IBIT sees approximately $153 million in daily investments since it began. Additionally, the share price for IBIT has climbed an impressive 117% since its debut.
Bitcoin ETF Demand Remains on the Peak
As an analyst, I’ve observed a substantial increase in demand for Spot Bitcoin ETFs following Donald Trump’s victory last month. Over the past seven weeks, there have been immense inflows totaling approximately $12 billion, propelling the value of Bitcoin to soar over 50%. Currently, Bitcoin stands at around $104,085 with a daily volatility of 1.4%, boasting a market cap of $2.06 trillion and a 24-hour volume of $88.67 billion.
Experts who analyze cryptocurrency markets anticipate that Bitcoin Exchange-Traded Funds (ETFs) could set fresh records in the near future. The President of ETF Store, Nate Geraci, suggested that it’s plausible that the assets in spot Bitcoin ETFs could surpass those in physical gold ETFs by the end of this year. This prediction, however, depends on the price trends for both Bitcoin and gold in the upcoming weeks. Notably, physical gold ETFs have been active for 20 years now, and it seems that Bitcoin ETFs may soon attempt to break this milestone.
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2024-12-16 16:33