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Fidelity’s spot Bitcoin (BTC) exchange-traded fund (ETF) quickly established itself as the second ETF provider to exceed $1 billion in assets under management (AUM) within a week of its introduction.
According to data from Bloomberg, Fidelity’s Wise Origin Bitcoin Trust reached this benchmark on its fifth trading day, achieving flows that totaled $1.01 billion in AUM. BlackRock’s iShares Bitcoin Trust (IBIT) had attained the same milestone a day prior, with its AUM currently at $1.06 billion.
Spot Bitcoin ETFs. (Source: Bloomberg)
This accomplishment is significant considering the short time since the ETF’s launch, underscoring a swift rise among the newly approved issuers. The rapid growth indicates considerable investor interest in these offerings, despite the ETF’s earlier hurdles in obtaining approval from the U.S. Securities and Exchange Commission (SEC).
Market analysts highlight the importance of reaching $1 billion in AUM in such a brief period, pointing out that this achievement is remarkable for any ETF. Furthermore, the inflows into these ETFs within just one week reflect strong demand from investors seeking exposure to Bitcoin through regulated investment options.
Importantly, a CryptoSlate Insight noted that the significant inflows into these ETFs have propelled BTC to become the second-largest commodity in the U.S. by AUM, surpassing silver. This transition illustrates the increasing acceptance and integration of cryptocurrency products into conventional investment portfolios.
GBTC outflows exceed $2B
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In the meantime, the total outflow from Grayscale’s GBTC has now reached a considerable $2 billion.
This notable outflow continues a persistent trend since the fund’s inception, with a significant $582 million outflow recorded on its fifth day in the market.
GBTC’s discount has risen to approximately 96 basis points alongside the outflow. Analysts propose that this discount adjustment may be a reaction to the current selling pressure in the market.
Trading activity remains robust.
Despite their brief one-week presence, Bloomberg ETF analyst Eric Balchunas emphasized the impressive growth in trading activities for the “Newborn Nine” ETFs.
Specifically, the trading volume for these ETFs increased by 34% between the fourth and fifth trading days, countering the usual post-launch decline seen in highly anticipated launches.
“Typically with a hyped-up launch, you observe volume steadily decreasing each day post-launch; [it’s] uncommon to see it reverse back up. All but one experienced a rise too, but GBTC [remained] flat, so it wasn’t a volatility issue,” Balchunas remarked.
The post Fidelity’s Bitcoin ETF joins the $1 billion club in alongside BlackRock appeared first on CryptoSlate.
