Bitcoin ETF issuers, except for Grayscale, have collectively acquired more than 86,000 BTC at an average price of $42,000, an investment of $3.63 billion, according to on-chain analyst Ali on X.
The sustained high trading activity shows investors’ ongoing interest and engagement in recently launched Bitcoin ETFs.
Bitcoin ETFs Show Resilience
Among Bitcoin ETF issuers, iShares emerges as the leader, boasting a substantial holding of over $1.3 billion in BTC. Following closely is Fidelity, securing the second position with BTC holdings valued at $1.22 billion.
Bitwise and ARK/21Shares claim the third and fourth spots, with holdings worth $409.23 million and $364.94 million, respectively.
Excluding @Grayscale, all #Bitcoin ETF issuers have collectively acquired over 86,320 $BTC at an average price of $42,000 – totaling a massive $3.63 billion investment.
Do you think these seasoned institutions really bought at the top? This level of institutional investment… pic.twitter.com/kwB2BIPZ8e
— Ali (@ali_charts) January 22, 2024
In the fifth position is Invesco, holding a total BTC value of $249.49 million. VanEck precedes in the sixth position, with holdings valued at approximately $89.21 million. The lineup is completed by Valkyrie, Franklin Templeton, and WisdomTree, contributing to the diverse array of Bitcoin ETF issuers in the market.
Bloomberg ETF analyst Eric Balchunas has noted a shift in his perspective regarding the percentage of GBTC (Grayscale Bitcoin Trust) outflows directed towards the “Newborn Nine” Bitcoin ETFs. Initially estimating 10%, he now believes the figure is closer to 35%, particularly emphasizing the impact of retirement accounts where tax considerations are not a significant issue.
Also I am changing my tune a bit on what % of GBTC outflows are going to the Nine. I said 10% but I think more like 35%, esp bc of retirement accounts where tax hit not issue. @JSeyff
— Eric Balchunas (@EricBalchunas) January 22, 2024
Balchunas has also observed a departure from the typical trend in most ETFs, where trading volume decreases after the initial launch. Contrary to this pattern, the “Newborn Nine” Bitcoin ETFs have demonstrated resilience, with the fifth day of trading witnessing a 34% increase in volume.
Strong Trading Activity in Bitcoin ETFs
Bloomberg analyst James Seyffart reported on X that there was robust trading activity in Bitcoin ETFs, with today’s volume exceeding $2 billion and Grayscale Bitcoin Trust (GBTC) still contributing slightly more than half ($1.013 billion).
Seyffart also noted that the trading volume for Fidelity has surpassed that of BlackRock for the second consecutive day. Hе speculates that approximately 35% of the outflows from GBTC have been directed toward nine other spot Bitcoin ETFs.
Notably, GBTC experienced a reduction in Assets Under Management (AUM) by $2.8 billion. There was also a decline in its spot Bitcoin shares, amounting to a loss of $1.62 billion in the initial four days, indicating a shift in investor preference toward the new ETFs.
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