NEW YORK, February 10, 2024 — The newly launched spot Bitcoin exchange-traded funds (ETFs) have reached a significant milestone, surpassing $10 billion in assets under management (AUM) after just 20 trading sessions. This rapid accumulation highlights the strong investor appetite for these products since their approval in early January.

According to data from BitMEX Research, the nine Bitcoin ETFs collectively recorded $2.7 billion in net inflows as of January 9. BlackRock’s iShares Bitcoin Trust (IBIT) leads with $4 billion in assets, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) follows closely with over $3.4 billion in Bitcoin holdings. The ARK 21Shares Bitcoin ETF also achieved a noteworthy milestone, surpassing $1 billion in assets.

Conversely, the Grayscale Bitcoin Trust (GBTC) has experienced significant outflows, totaling $6.3 billion over the past month. On February 9, GBTC saw $51.8 million in outflows, marking the smallest daily withdrawal volume since its conversion to an ETF. Despite this, Bloomberg analyst Eric Balchunas observed that the nine new ETFs are showing resilience and even strengthening, contrary to initial expectations.

Looking ahead, Bitcoin ETF inflows are projected to rise as more trading firms complete their assessments of these investment vehicles. Bitcoin’s price has remained above key technical support levels in January, including the 200-day moving average ($29,902) and the on-chain mean ($33,487), with a modest increase of 0.6% to $42,585 over the month.

ARK Invest's analysis suggests a bullish outlook for Bitcoin, proposing that it is increasingly positioned as a replacement for gold in risk-off scenarios. The report highlights that Bitcoin's purchasing power relative to gold has surged twenty-fold over the past seven years, with Bitcoin now able to buy approximately 20 troy ounces of gold compared to just one troy ounce in April 2017. This trend is expected to continue as Bitcoin cements its role in financial markets.

In the broader macroeconomic context, ARK Invest anticipates that Bitcoin will remain resilient as inflation moderates and real interest rates rise, given the ongoing loss of bank deposits. The U.S. Securities and Exchange Commission (SEC) approved Bitcoin ETF applications from firms including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, and Grayscale on January 10, marking a pivotal moment more than a decade after the Winklevoss twins first applied to launch the Winklevoss Bitcoin Trust in 2013.