Connect with us

Hi, what are you looking for?

Economy

ETF History Made: BlackRock and Fidelity’s Bitcoin Launches Become the Talk of Wall Street

Interest in market leading spot Bitcoin ETFs has exploded one month after launch, according to Bloomberg’s Senior ETF analyst Eric Balchunas.

Balchunas posted a multi tweet thread on X crunching the numbers behind the newly launched Bitcoin investment products. BlackRock and Fidelity’s ETFs took first and second place respectively, attracting over $6 billion in funds since their launch on January 10.

Of course GBTC is a factor here and so I guess you could argue some of the Nine’s aum is BYOA? Not enough tho for me to write any of this off as a lot of GBTC outflows were FTX and prop traders arbing the discount which is cash likely not destined for another btc ETF. I think the…

— Eric Balchunas (@EricBalchunas) February 8, 2024

That means the two have comfortably flipped all opposition from more stalwart ETFs like Invesco’s QQQ, which holds shares in the top non-financial publicly traded companies, the NASDAQ 100, a list that includes Apple, Google, Microsoft and Tesla.

Balchunas also explained that money poured into the Bitcoin funds every single day of the month. This is important to note, because the assets-under-management (AUM) metric can be misleading when a sole investor or a small group are responsible for all of the inflows.

Spot Bitcoin ETFs by Bitwise and Ark Invest also made the list, coming in 21st and 22nd respectively.

Grayscale already made ETF history


Grayscale’s GBTC, which is technically the largest ETF at $21 billion AUM, did not make the list because it had a decade-long headstart. GBTC started life as a Bitcoin fund in 2013, but it wasn’t until mid-2015 that shares began publicly trading under the ticker GBTC.

Since the US Securities and Exchange Commission approved the ETFs last month, Grayscale’s has been the only one posting outflows: $6 billion in fact. This is because for years the fund had been trading at a discount to its underlying asset, due to its closed-end structure. There were a fixed number of shares and no new ones could be created.

The closed-end structure evaporated along with the discount after GBTC converted to an ETF. Many holders exited their positions to pocket a tidy profit, including the estate of disgraced former crypto exchange FTX, which sold 22 million GBTC shares recently and may have raised a billion from it.

Still, if Wall Street is lapping up BlackRock and Fidelity’s Bitcoin ETFs today, it’s only because Grayscale made it possible.

Grayscale had created the Bitcoin Trust with an eye to its eventual conversion into an ETF. In 2022, the SEC refused its application. Grayscale took the matter to a Federal appeals court and on August 29, 2023, scored a landmark victory for the industry when Judge Neomi Rao overturned the SEC’s rejection, calling it “arbitrary and capricious.”

It may have been just another Tuesday in Washington, but it was a defining moment in crypto and ETF history.

The post ETF History Made: BlackRock and Fidelity’s Bitcoin Launches Become the Talk of Wall Street appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Get your daily, bite-sized digest of blockchain and crypto news – investigating the stories flying under the radar of today’s news. In today’s crypto...

Economy

The amount of Bitcoin (BTC) held on Coinbase has plummeted by almost $1 billion worth of assets as whales move their holdings. New data...

Economy

Mumbai, the bustling financial hub of India, has introduced a metaverse initiative aimed at showcasing its latest and upcoming city-wide infrastructure megaprojects. Dubbed the Mumbai...

Economy

BlackRock, the world’s largest asset manager, has intensified its media advertising campaign for its recently launched iShares spot Bitcoin exchange-traded fund (ETF), framing the...

Economy

In an exclusive, gaming-focused interview with Cryptonews, the BLOCKLORDS game CEO David Johansson talked about the indestructible link between crypto and gaming. He told...

Economy

A recent study by a team of researchers from Europe and Asia explored the possibility of predicting positive outcomes in crypto market trading using...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.