ARK Invest and Bitwise Achieve Significant Success in Spot Bitcoin ETFs!

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• Ark Invest and Bitwise’s Bitcoin ETFs have seen net inflows of $533.8 million and $537.4 million, respectively, in the first nine days.
• The entry of Bitcoin ETFs witnessed a massive $4 billion in trading volume. However, since then, the market has been somewhat sluggish, anticipating a recovery.
• Currently, Grayscale is recorded to have a net outflow of $3.4 billion. On the 7th trading day of all 12 Spot Bitcoin ETFs, there was a net outflow of $87.20 million.

Standing out among Spot Bitcoin ETFs, Ark Invest and Bitwise have distinguished themselves by attracting a significant amount of capital.

ARK and Bitwise Succeed with Bitcoin ETFs

Bitcoin ETFs experienced a turbulent start with significant outflows in the first few days of trading. However, two ETFs that attracted over half a billion dollars in inflows emerged as a ray of hope amid dark clouds. These two ETFs, namely Ark Invest and Bitwise, saw net inflows of $533.8 million and $537.4 million, respectively, in the first nine days.

Ark Invest and Bitwise’s Bitcoin ETFs have seen net inflows of $533.8 million and $537.4 million, respectively, in the first nine days. Bloomberg analyst Eric Balchunas notes that such success in the first month would be considered remarkable for any regular launch.

The entry of Bitcoin ETFs witnessed a massive $4 billion in trading volume. However, since then, the market has been somewhat sluggish, anticipating a recovery. Previously, on January 22, the withdrawal amount from Grayscale showed a surprising increase with a net outflow of $640.50 million.

Currently, Grayscale is recorded to have a net outflow of $3.4 billion. On the 7th trading day of all 12 Spot Bitcoin ETFs, there was a net outflow of $87.20 million. Additionally, $1.09 billion has been invested in these ETFs so far. However, the massive $3.4 billion outflow from GBTC had a significant impact on the measure of inflows.

Blackrock provided the sole positive trading update. The net inflow into Blackrock’s Bitcoin ETF amounted to $170 million, bringing the total AUM to $1.99 billion.

Will the Market Recover?

The volatility impact of risky ETFs has affected other assets as well. The diminishing excitement around Bitcoin ETF led JP Morgan to downgrade Coinbase’s rating from “neutral” to “overweight.” Pressured ETFs have swung Bitcoin’s price like a pendulum.

Since its debut, Bitcoin’s price has frequently fallen below $40,000. Despite the decline, the market expected it to surpass $50,000 after approval. Hence, there are numerous risks associated with new investment opportunities that need to be considered.

Therefore, it is expected that Bitcoin ETF trading volume and fund inflows will increase after a certain point, and it is still too early to evaluate the sector by analyzing only the first nine days of trading. Other factors that could impact the prices of Bitcoin and related assets include the upcoming Bitcoin Halving, Ethereum ETH approval, and the Fed’s interest rate direction.