Bitcoin ETF passes $20 billion milestone in just 10 months

The numbers don't lie: Bitcoin Exchange Traded Fund (ETF) The one approved in January is very popular.

Data from far-side investors show Total net inflows into Bitcoin ETFs currently amount to $20.2 billion. And that includes $20 billion that was drained from Grayscale's endowment.

In the world of ETFs, flows refer to the amount of money flowing into and out of a product. These are a good measure of a fund's performance as they indicate how active the vehicle is.

Investors have invested billions of dollars in this fund, but they are also cashing out billions of dollars from Grayscale's GBTC. Grayscale's investment products have traditionally operated like closed-end funds, making it difficult for investors to redeem their shares. With the change in January; capital outflow The value of the product declined as investors sought cheaper ETFs or cashed out their profits.

However, it appears that Grayscale's customers have more or less cashed out, and money is once again rapidly flowing into Bitcoin ETFs from other issuers.especially this weeknearly $2 billion has already flown in.

Of the 10 ETFs currently trading, Wall Street giant BlackRock's iShares Bitcoin Trust accounted for the bulk of the more than $22.4 billion in inflows, according to Pharcyde figures.

Bloomberg ETF analyst Eric Balchunas wrote on X (formerly Twitter) that it took gold ETFs five years to reach the same overall flows that Bitcoin ETFs achieved in 10 months.

ETFs allow investors to buy stocks that are tied to the price of the underlying assets, from gold and foreign currencies to Bitcoin and tech stocks.

U.S. Securities and Exchange Commission (SEC) gave the green light up to 10 spots Bitcoin exchange traded fund In January, after 10 years of denial.

Following the product's approval, capital rapidly flowed into the space, as investors and institutions previously cautious about purchasing cryptocurrencies were now able to do so through their brokerage accounts. Leading asset management companies such as BlackRock, Grayscale, and Fidelity will be responsible for storing, buying and selling digital coins.

Then the speculators It's late It put cash into the commodity at a time when there was uncertainty about what the Federal Reserve would do about historically high interest rates. However, in line with central bank policy, decision After the decision to cut interest rates last month, investors have rekindled their appetite for “risk-on” assets like Bitcoin.

bitcoin price currently standing According to CoinGecko, it rose nearly 11% in seven days to $67,373. Just two months after the Bitcoin ETF was approved, the largest digital coin hit a new all-time high of $73,737.

Former Balchunas said decryption Bitcoin has had its share of ups and downs this year, but it would have struggled to maintain its value if there were no new investment vehicles trading on American stock exchanges.