On February 13, the net inflow of assets into spot Bitcoin ETFs amounted to $631.2 million. The indicator was second only to the first day of trading in products — $655.2 million.
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Same data in BTC terms. +12,736 BTC flow on 13th Feb 2024 pic.twitter.com/ogUVHjVDbZ
— BitMEX Research (@BitMEXResearch) February 14, 2024
In terms of bitcoins, the daily increase in AUM structures reached 12,736 BTC.
The fund from BlackRock demonstrated strong dynamics, accounting for $493 million of the total amount (9943 BTC), experts from BitMEX Research noted. The volume of cryptocurrency on the iShares Bitcoin Trust balance exceeded 105,000 BTC.
The Grayscale exchange-traded bitcoin fund, which the company transformed from a trust that had been operating since 2015, is steadily losing capital. At the time of conversion to the ETF, GBTC had approximately $29 billion in assets under management.
After converting to an exchange-traded fund on January 11, over $6.5 billion (~156,300 BTC) was withdrawn from the structure.
The company continues to maintain a commission rate of 1.5% against the background of a zero rate for most competitors.
Grayscale has no doubt about the prospects of its Bitcoin fund
Even on the eve of the SEC’s approval of spot Bitcoin ETFs, industry experts doubted the market attractiveness of Grayscale’s proposal.
However, according to the head of the company, Michael Sonnenshein, the size of the fees is explained by “10 years of successful experience” and the presence of a “diversified investor base.” He predicted the collapse of most of the 11 Bitcoin ETFs launched, noting that they have yet to earn a reputation.
In October 2023, Grayscale defeated the SEC in court. The court rejected the Commission’s appeal against a previous decision that required it to reconsider its refusal to convert GBTC into a spot ETF.
After this, the community increased expectations of positive approval of applications for such products. The Commission has indeed intensified communication with potential issuers. In December, SEC Chairman Gary Gensler acknowledged that the agency’s change in position was influenced by “court decisions.”
On February 13, opening the panel discussion The Gloves Are Off: The Bitcoin ETF Showdown, its moderator Eric Balchunas (stock analyst at Bloomberg) addressed Grayscale ETF Development Director Dave Lavalier:
“He beat Gensler. Not many people can say that.”
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.@Matt_Hougan on @Vanguard sitting out $BTC ETFs: “There’s some irony there because Wall Street was very anti-Vanguard when they launched, some even said they were anti-American. Then Vanguard was anti-ETFs in the beginning and now they’re one of the biggest ETF issuers in the… https://t.co/VCSllhmxPb
— Eleanor Terrett (@EleanorTerrett) February 13, 2024
Participants discussed the prospects for widespread adoption of Bitcoin spot funds by institutional investors.
Experts are optimistic about Wall Street’s adoption of Bitcoin ETFs
The emergence of new products caused a contradictory reaction among traditional finance players, despite the presence of investment giants BlackRock and Fidelity among the issuers.
Their competitor Vanguard has decided not to offer clients access to Bitcoin ETFs. The company explained this by saying that the first cryptocurrency is an “immature asset class” and does not correspond to the company’s philosophy.
Bitwise chief investment officer Matt Hogan found “a certain irony” in this. He recalled that Vanguard itself faced opposition on Wall Street after its creation and then opposed the emergence of exchange-traded funds as a product.
“They are now one of the largest ETF issuers in the world. My point is that eventually they will understand this and change their minds,” Hogan said.
Galaxy Digital’s chief global development officer, Steve Kurtz, said he would be surprised if the top 10 stockbrokers didn’t become participants in the Bitcoin ETF market next year.
“Perhaps we will see FOMO from institutions,” he suggested.
Let us recall that at the end of January, Bitcoin ETFs from BlackRock and Fidelity entered the top ten largest American ETFs in terms of asset inflows.
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2024-02-14 15:20:32
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