January 12, 2024

Record-Breaking Launch: Bitcoin ETFs Garner Over $4 Billion on Debut

The inaugural day of trading for bitcoin ETFs witnessed an unprecedented influx, surpassing $4.3 billion, setting an historic record. Notably, iShares Bitcoin Trust ETF (IBIT) and Grayscale Bitcoin Trust (GBTC) emerged as the frontrunners in attracting substantial funds.

On Thursday, the first day of trading for bitcoin exchange-traded funds, a staggering $4 billion flowed into the market, as reported by Eric Balchunas, Bloomberg’s senior ETF analyst, at the close of the market on Thursday.

Describing the event as "Easily the biggest Day One splash in ETF history", Balchunas shared this observation on the social media platform X.

BlackRock Inc.'s iShares Bitcoin Trust ETF (IBIT) led the cohort of 11 recently launched bitcoin ETFs, securing over $1 billion on its inaugural day. The fund imposes an annual fee of 0.25%, discounted to 0.12% for the first 12 months for assets up to $5 billion.

Grayscale Bitcoin Trust (GBTC), transitioning from a Trust fund to a spot bitcoin ETF, garnered over $2 billion in inflows, claiming the top spot in the overall ranking. Holding an impressive $29 billion in assets under management, it stands as the largest bitcoin ETF globally and carries the highest annual fee (1.5%) among spot bitcoin ETFs.

The Fidelity Wise Origin Bitcoin Fund (FBTC) claimed the third position, attracting $673 million in inflows. ARK 21Shares Bitcoin ETF (ARKB), managed by Cathie Wood, followed closely with an influx of $275 million.

In contrast, the Valkyrie Bitcoin Fund (BRRR), WisdomTree Bitcoin Fund (BTCW), and the Hashdex Bitcoin ETF (DEFI) experienced more modest success, each recording inflows below $10 million.

As spot bitcoin ETFs commenced their first day of business on Wall Street, bitcoin briefly surged beyond $48,000 on Thursday, marking its highest point since 2021. BTC flirted with breaking the $49,000 threshold, reaching $48,973 before retracing.

As of the latest update, bitcoin is trading around $46,000, boasting a market capitalization of $900 billion.

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