The “Newborn Nine” Bitcoin ETFs have collectively raised 95,000 BTC, with collective assets under management (AUM) approaching $4 billion, according to Available data.
According to Bloomberg ETF analyst Eric Balchunas, this notable influx of capital highlights investors’ growing appetite for digital assets and the growing acceptance of cryptocurrencies in mainstream finance.
Balchunas noted that most ETFs typically see a decline in trading volume each day after their launch. However, Newborn Nine shares continued to record record volume, with the fifth day of trading seeing a 34% increase in volume.
$1 billion club
BlackRock’s IBIT and Fidelity’s FBTC led the pack in growth. Both funds saw significant inflows of over $1.2 billion each during this short period, and each holds just over 30,000 BTC.
While Fidelity’s FBTC has slightly higher flows, BlackRock’s IBIT tops the assets under management, having $1.4 billion compared to Fidelity’s roughly $1.3 billion.
Other notable ETFs include Invesco’s ETF, which had its best day on January 19, attracting more than $63 million, although total assets under management did not exceed $200 million. VanEck’s ETF showed similar performance and broke the $100 million AUM mark on the sixth day of trading.
Meanwhile, assets under management at Valkyrie Investments and Franklin Templeton were $71.7 million and $48.6 million, respectively, on January 19. WisdomTree has yet to cross the $10 million mark.
Gray flows
This significant inflow of capital into newly launched Bitcoin ETFs has outpaced outflows from the Grayscale Bitcoin Trust (GBTC), which saw assets under management decline by $2.8 billion in the same period.
GBTC saw its spot Bitcoin shares decline, amounting to a loss of $1.62 billion in the first four days. This indicates a shift in investor preference towards newer ETFs, which provide regulatory clarity and ease of access.
Despite the volatile nature of Bitcoin, which saw a massive sell-off in the same period, these ETFs have been successful. This success can be attributed in part to the redirection of GBTC outflows into these new Bitcoin ETFs.