The years of pent up demand for Bitcoin (BTC) Exchange Traded Funds (ETFs) are still generating intense activity around the top cryptocurrency, with the new investment vehicle seeing its strongest days yet.
BlackRock, the world's largest fund manager, is leading the way. Yesterday alone, the fund manager's iShares Bitcoin Trust received an inflow of $493 million has now $5.1 billion in assets under management.
Meanwhile, Grayscale's GBTC sit on the most cash at over $22.9 billion. The fund previously operated like a closed-end fund and held large amounts of cryptocurrencies. But in January, it became an ETF, giving users more flexibility in redeeming shares.
Yesterday in total $631 million flowed into the ten investment vehicles, as BitMex Research shows.
The flow of money into the crypto funds has caused the BTC price to rise – it is now comfortably above the $50,000 mark touched for the first time in two years on Monday. CoinGecko shows that BTC is currently trading for $51,622 per coin.
After a decade of saying no to the products, the Securities and Exchange Commission finally approved 10 Spot BTC ETFs on January 10th.
Meanwhile, investors appear to be losing interest in gold – at least among ETF supporters. Bloomberg ETF analyst Eric Balchunas said on Twitter that investors were withdrawing money from gold ETFs.
Such vehicles give More sophisticated and traditional investors are betting on crypto: the funds hold the digital coins, while people can buy stocks that track the underlying price of BTC and not have to worry about it where to store it.
Edited by Ryan Ozawa.
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