[블록미디어 최창환 기자]Decrypt reported on the 17th (local time) that the Bitcoin Exchange Traded Fund (ETF) has proven its popularity by recording a net inflow of more than $20 billion in just 10 months since it was approved.
Total net inflows since the Bitcoin ETF was approved in January 2024 have reached $20.2 billion, according to data from Farside Investor. This figure calculates that $20 billion was withdrawn from Grayscale’s fund.
In the ETF market, fund flow is an important indicator of fund performance. Grayscale’s GBTC product was operated as a closed-end fund in the past, making it difficult for investors to easily recover their funds. However, as GBTC was converted to an ETF in January of this year, many funds fled, and investors sought cheaper ETFs or realized profits.
However, recently, Grayscale investors’ cash out has almost been completed, and funds have begun to flow into the Bitcoin ETF again. In particular, about $2 billion in funds came in this week alone. Among the 10 Bitcoin ETFs currently trading, BlackRock’s iShares Bitcoin Trust performed the best, raising more than $22.4 billion.
Bloomberg ETF analyst Eric Balchunas said that while it took five years for a gold ETF to achieve the same inflow, the Bitcoin ETF achieved it in just 10 months.
Bitcoin ETFs have crossed $20b in total net flows (the most imp number, most difficult metric to grow in ETF world) for first time after huge week of $1.5b. For context, it took gold ETFs about 5yrs to reach same number. Total assets now $65b, also a high water mark. pic.twitter.com/edldEimfqd
— Eric Balchunas (@EricBalchunas) October 17, 2024
ETF is an investment vehicle created in the form of stocks that allows investors to track the prices of various assets such as gold, foreign currencies, Bitcoin, and technology stocks. The U.S. Securities and Exchange Commission (SEC) approved 10 spot Bitcoin ETFs in January 2024.
Following the Federal Reserve’s (Fed’s) recent decision to cut interest rates, investors are showing willingness to invest in high-risk assets such as Bitcoin. At the time of writing, the price of Bitcoin according to CoinDesk was $67,373, up nearly 11% in one week.
Balchunas said that despite Bitcoin experiencing several major fluctuations this year, it was able to maintain its value thanks to the launch of ETFs.
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