The American made his verdict in mid-January Securities and Exchange Commission (SEC) listed ten different spot exchange-traded funds (ETFs) for Bitcoin (BTC) that immediately gained popularity. There have been a few dips, but last week’s big price hikes have changed that dramatically. Funds grew almost as quickly as the first week.
Market value of crypto exchange products hits record
Crypto asset manager CoinShares writes in its weekly research report that measured exchange products grew by more than $1,115 million last week.
It is the second largest growth of the year, only the increase immediately after the launch of the new spot ETFs was larger. At that time, net growth was $1,185 million, about $70 million more than last week’s net inflows.
The total market value of the funds is even more impressive given that the prices of many cryptocurrencies have increased slightly since the beginning of January. In total, the stock market funds now manage $59 billion, an amount not seen since the beginning of 2022. However, CoinShares highlights that bankrupt crypto lender Genesis could face a meltdown if it sells its $1.6 billion in assets.
Growth primarily through Bitcoin ETFs
The growth was driven primarily by Bitcoin exchange products, which increased by $1,089.1 billion and accounted for nearly 98 percent of the new money. Almost all of this went to the spot ETFs of BlackRock subsidiary iShares ($693.6 million) and Fidelity ($522.6 million). Meanwhile, Grayscale’s funds have shrunk again by $414.8 million, although this is slowly easing.
This picture is confirmed when we look at the location of the funds. Products in the United States grew by almost $1,109 million, while exchange products from other countries (Canada, Germany and Sweden) experienced significant outflows. Investors therefore prefer spot ETFs from the USA.
Ethereum (ETH) and Cardano (ADA) exchange products rose by $16.5 million and $6.1 million, respectively. In addition, exchange products for other coins remained in the background – at least in net terms. Funds that are short on Bitcoin and therefore hoping the price will fall have seen a net loss of $400,000.