ETC Bitcoin is booming! The fall of Grayscale?
Recently approved in the United States, Bitcoin ETFs have met with explosive success. In just about ten days of trading, these new products have collectively gathered more than 150,000 BTC, equivalent to nearly 7 billion dollars in assets.
The Rapid Takeoff of the New Bitcoin Spot ETFs
After years of anticipation, the American securities regulator finally approved in 2024 the launch of the first Bitcoin ETFs.
Their climb is spectacular! In less than 3 weeks, they have totaled more than 150,000 BTC in assets under management. Just yesterday, they recorded net inflows exceeding 1 billion dollars, according to BitMEX Research.
These figures demonstrate the growing interest of investors in this new tool. They favor its simplicity of purchase, identical to any publicly traded stock. Billions are flowing into this new gateway to Bitcoin.
BlackRock and Fidelity in the Pole Position
Among the recently launched Bitcoin ETFs, two stand out distinctly. BlackRock’s “IBIT,” a global leader in asset management, alone holds 56,621 BTC, worth 2.5 billion dollars. It has just surpassed the combined Canadian ETFs.
Right behind, Fidelity’s “FBTC” has 51,064 BTC under management. Together, these behemoths control the bulk of the 150,000 BTC accumulated by the new American ETFs. Their firepower commands respect.
Yesterday, BlackRock’s IBIT saw 208 million dollars in net inflows. Fidelity’s FBTC also received a surge of interest, with 198 million poured in a single day. Investors’ confidence in these products is materializing in massive contributions.
The Decline of Grayscale, Fallen Giant of Bitcoin Products
The resounding entry of Bitcoin ETFs spells bad news for Grayscale and its famous Grayscale Bitcoin Trust (GBTC). Long enjoying a near-monopoly, this investment vehicle is undergoing massive erosion.
Its market share in traded volumes has dropped to only 36%, down from nearly 64% at the beginning of 2023. Its daily net outflows often exceed 300 million dollars. The colossus is bleeding profusely in the face of competition from the next-generation ETFs.
Certainly, Grayscale remains a juggernaut with its 497,000 BTC under management. But the trend is significant. Now, investors predominantly favor the simplicity of Bitcoin ETFs.
The unstoppable rise of the Bitcoin spot ETFs marks a milestone in the democratization of cryptocurrency. These products offer unparalleled accessibility to traditional investors, as evidenced by the 150,000 BTC in assets accumulated in less than 3 weeks.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.