Spot Bitcoin exchange-traded funds (ETF) have breached the milestone of $10 billion in assets under management (AUM) just a month after getting approval from the United States securities regulator.
The US Securities and Exchange Commission (SEC) approved as many as 11 spot Bitcoin ETFs on January 10, paving the way for a new investment class.
The value of Bitcoin has appreciated by around 12% since then.
What is a spot bitcoin ETF?
A spot Bitcoin ETF tracks the spot market price of Bitcoin and invests in the cryptocurrency directly at the current market price against ETFs based on futures contracts.
Investment in spot ETFs is economical and easier than direct investment in Bitcoin, leading to their popularity among investors.
According to BitMax Research data, in the 20 trading sessions since the approval, nine spot Bitcoin ETFs reached an AUM total of $10 billion.
The biggest spot Bitcoin ETF
As of February 9, BlackRock’s iShares Bitcoin Trust led the tally with $4 billion in assets. Fidelity’s Wise Origin Bitcoin Fund was second, with total inflows of $3.4 billion.
ARK 21 reached the $1.02 billion mark, BITB Bitwise amassed $0.857 billion of AUM, and BTCO Invesco has a total AUM of $0.343 billion.
On February 9, spot ETFs saw net inflows of $541.5 million in a single day as the price of Bitcoin crossed the $48,000 mark for the first time since ETFs’ approval.
(Edited by : Sriram Iyer)
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