BlackRock’s iShares Bitcoin Trust (IBIT), has attracted 16,362 Bitcoins, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with 12,112 bitcoins.
However, Grayscale’s Bitcoin Trust (GBTC), the previously available Bitcoin fund, has seen outflows of approximately 25,000 bitcoins, likely due to its higher fees compared to the new ETFs.
Despite the outflows from GBTC, the overall impact has resulted in $894 million flowing into Bitcoin ETF products. This has occurred while the price of Bitcoin has remained relatively stable, hovering around $42,000.
The launch of Bitcoin ETFs was highly anticipated by the cryptocurrency community as it provides a convenient way for mainstream investors to gain exposure to Bitcoin without the need for cryptocurrency exchanges.
Some argue that the lack of a significant price reaction implies the ETF launch was not as successful, but others point out that the trading volumes have been record-breaking for new ETFs. The $10 billion traded in the first three days far exceeds the typical launches of other ETFs.
The debate now revolves around whether the influx of investments represents temporary enthusiasm or the start of broader adoption of Bitcoin through regulated investment vehicles. Regardless, the initial performance of the first bitcoin ETFs has already surpassed most predictions, underscoring the strong demand for crypto assets.
