On Wednesday, January 10, the U.S. Securities and Exchange Commission (SEC) finally approved the launch of a spot Bitcoin ETF, representing a notable event in U.S. trading history.
So far, market data for these investment funds has confirmed the theory of increased institutional demand for Bitcoin, with total net inflows of over $800 million and trading volume of $3.6 billion in the first two days of trading.
Although the inflow has not yet been reflected, With the price of leading cryptocurrency BTC falling 2% last week, the spot Bitcoin ETF is off to an explosive start, clearly indicative of potential gains for the world’s largest asset and the general cryptocurrency market.
Spot Bitcoin ETF Attracts More Than $1.4 Billion in Two Days – Bloomberg Data
In a Jan. 13 X post, Bloomberg ETF analyst Eric Balchunas shared insight into the spot Bitcoin ETF’s impressive performance during its debut trading week.
Balchunas pointed out that nine of the 11 approved spot BTC ETFs have seen inflows totaling more than $1.4 billion. Leading the way is BlackRock’s IBIT, with estimated asset inflows of $497.7 million, followed closely by Fidelity’s FBTC, which boasts investments of approximately $422.3 million.
The BTC spot ETFs of Bitwise and ARK/21 Shares also performed very positively, attracting $237.9 million and $105.2 million, respectively. Grayscale’s GBTC, on the other hand, was abandoned by the market, recording a whopping $579 million in outflows in the first two days of trading.
Source: Bloomberg
Following the SEC’s approval on Wednesday, investors have poured a lot of money into GBTC, which recently converted from a closed-end fund to a cash ETF. SkyBridge Capital founder Anthony Scaramucci has already outlined this trend as one of the potential reasons for Bitcoin’s decline last week.
Overall, the spot Bitcoin ETF market recorded an impressive net inflow of $818.9 million in its debut trading week. These numbers are likely to improve in the coming weeks as sales eventually decline. Meanwhile, investors are still anticipating the debut of DEFI, Hashdex’s spot ETF, which is undergoing a fund conversion from Hashdex’s Bitcoin futures ETF.
BTC price overview
As of this writing, Bitcoin is trading at $42,980, reflecting a loss of 0.73% on the last day. Meanwhile, the token’s daily trading volume has decreased by 62.33%, putting its current value at $16.9 billion. However, with a market capitalization of $842.23 billion, Bitcoin is still the world’s largest cryptocurrency.
BTC trading at $42,916.07 on the daily chart | Source: BTCUSDT chart on Tradingview.com
steelActual images from Yahoo Finance, charts from Tradingview
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Source: NewsBTC.com