Bitcoin ETFs: Its first 140 days in numbers
In January, the cryptocurrency community was energized by the U.S. Securities and Exchange Commission’s (SEC) endorsement of Bitcoin spot exchange-traded funds (ETFs) in the U.S. Now, 140 days on, it’s time to look back at the significant expansion and implications of this decision for Bitcoin spot ETFs.
Key Insights (according to Eric Balchunas and Michael Saylor):
- Bitcoin Spot ETFs now boast an impressive $60 billion in assets under management.
- Blackrock’s IBIT Bitcoin spot ETF has experienced 71 days of continuous inflows, making it one of the top 10 ETFs in history.
- Both IBIT and Fidelity’s FBTC have broken records by becoming the fastest ETFs to hit $10 billion in AUM — reaching this milestone in just 49 and 77 days, respectively, a dramatic shift from the previous record of 647 days.
- In just the first quarter, 937 investors chose Bitcoin ETFs, far surpassing the 95 investors who opted for gold ETFs during a comparable period in 2004, as per K33 Research.
Follow-on developments
Following the SEC’s green light, there have been notable advancements in the realm of ETFs and more broadly, exchange-traded products (ETPs):
- Germany: DWS has introduced crypto ETPs, widening the investment options within Europe.
- Hong Kong: The introduction of BTC and ETH ETFs has expanded the investment landscape across Asia.
- United Kingdom: The London Stock Exchange has joined the trend by launching its own crypto ETPs.
- Global: Major asset managers like Blackrock and Morgan Stanley have started incorporating Bitcoin ETFs into their multi-asset products, enhancing portfolio diversification.
- Institutional Interest: Entities like the Wisconsin Pension Fund have begun investing in BTC ETFs, indicating a strengthening trust in long-term crypto investments.
These advancements highlight the profound effect of the SEC’s approval on the Bitcoin market. The swift accumulation of assets in these ETFs is especially noteworthy, as ETFs typically see more gradual growth. This rapid adoption underscores a significant shift in investor confidence and perception of Bitcoin as an emerging asset class.
Read more on the detailed blog post on my website:
About the author
Dr. Jonas Gross is the Co-founder and Chairman of the Digital Euro Association (DEA) and serves as the Chief Operating Officer at etonec, a consultancy and prototyping company specialized in digital money and assets. Within his roles, Jonas guides companies and central banks through the complexities of digital currencies, facilitating the development of value-adding solutions.
With a Ph.D. in economics, Jonas is a global thought leader on central bank digital currencies, stablecoins, cryptocurrencies, and blockchain technology. Additionally, he co-hosts the German podcast “Bitcoin, Fiat, & Rock’n’ Roll,” serves as an external lecturer at the Frankfurt School of Finance and Management, and contributes as a member of the expert panel for the European Blockchain Observatory and Forum.
Personal website: https://www.jonasgross.info/en/
