Bitcoin ETFs Recorded an Impressive January – Straight into the Top 10

Two of the newly launched Bitcoin ETFs in the USA were among the ten ETFs with the highest capital inflows in January. This shows good prospects that Bitcoin ETFs will establish themselves sustainably.

In the run-up to the approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC), there was a lot of speculation about how they would perform on the traditional markets.

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Trading finally opened on January 11th and the investor magazine Morningstar recorded impressive figures in its monthly review of the ETF markets

Accordingly, the iShares Bitcoin Trust (IBIT) from the asset manager BlackRock and the Fidelity Wise Origin Bitcoin Fund (FBTC) were able to secure places in the Top10 ETFs that recorded the highest capital inflows in January.

Specifically, investments of $2.7 billion were listed for the BlackRock Bitcoin ETF and $2.3 billion for the Fidelity ETF. If you take into account the fact that these Bitcoin ETFs only had 14 trading days in January due to their launch date, this statistic can be assessed even more strongly. After all, the Bitcoin ETFs compete with top dogs, such as the Standard and Poor’s 500 index of the largest stock companies.

Bloomberg analyst Eric Balchunas pointed out the strong demand on X after the first week of trading with Bitcoin ETFs, when IBIT and FBTC even placed in the TOP 5 over the course of the week.

But the story also has a dark side. A Bitcoin ETF also appears in the list of ETFs with the largest outflows of capital for January, namely the one from Grayscale in second place. Investors withdrew $5.7 billion from this Bitcoin ETF with the ticker symbol GBTC. GBTC has a long history as a private fund and saw its conversion to an ETF following the SEC decision. This created opportunities to take profits, which not only the insolvency administrators of the crypto exchange FTX took advantage of.

Conclusion: Bitcoin ETFs – here to stay

Analysts such as those at the major US bank JPMorgan believe that the sales in the Grayscale Bitcoin ETF are leveling off and will soon come to an end. The experts at Coinbase also predict that capital inflows through IBIT, FBTC and other Bitcoin ETFs will then become noticeable .

What remains clear after January: Bitcoin ETFs are attracting great interest, but due to the special case of Grayscale, the capital inflows have not yet had a positive impact on the price of Bitcoin (BTC). If current developments continue, Bitcoin ETFs could gain more influence on the price curve of BTC.

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(Featured image by André François McKenzie via Unsplash)

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