- Spot bitcoin ETFs have seen over $10 billion in inflows in just two months, far exceeding analysts’ predictions for the entire first year.
- The bitcoin ETFs have already seen over $110 billion in trading volume in two months, double their assets under management.
- The ETFs now hold over 800,000 bitcoin, close to 4% of the circulating supply, adding legitimacy to crypto as an asset class.
Spot bitcoin exchange-traded funds (ETFs) have only been trading for two months, but they have already exceeded expectations across several key metrics. Analysts weigh in on how the ETFs have performed and transformed the crypto industry in a short period of time.
Inflows Shatter Predictions
The bitcoin ETFs have pulled in over $10 billion of inflows in two months, approaching most analysts’ predictions for the entire first year. Their inflows relative to assets under management are extraordinarily strong compared to the launch of the first gold ETF. The ETFs were expected to see modest daily inflows, but flows have far exceeded those predictions.
Trading Volumes Break Records
The bitcoin ETFs have seen over $110 billion in trading volume in two months, double their current assets under management. The volumes are breaking records, with BlackRock seeing $788 million in inflows in a single day. The high trading volumes are attributed to the ETFs tracking benchmarks that are priced at the 3-4pm New York close.
Bitcoin Holdings Near 4% of Circulating Supply
The ETFs now hold over 800,000 bitcoin, representing nearly 4% of the circulating supply and likely even higher when accounting for lost coins. Grayscale’s Bitcoin Trust held over 600,000 bitcoin before converting to an ETF, and the new ETFs have added another 180,000 bitcoin in just two months as bitcoin’s price rose.
Expanding to More Wealth Management Platforms
The ETFs are still not yet available on some major wealth management platforms like Vanguard, presenting opportunities for more inflows as they expand their listings. The large size and trading volumes of the ETFs make them viable options for pension funds as well. More platforms adding the ETFs could open the floodgates to even more capital.
Revitalizing the Crypto Industry
The ETFs have buoyed the crypto market, helping propel bitcoin’s price from $25k to $70k. They have exceeded expectations across every metric and added legitimacy to digital assets as an asset class. In just two months, they have already made a monumental impact that many thought would take years.
