Spot bitcoin ETFs draw inflows of nearly US$2 billion

The news: New US exchange-traded funds (ETFs) tracking the spot price of bitcoin have attracted strong investor interest in their first few days of trading.

The numbers: Investors have poured USD1.9 billion ($2.9 billion) into nine new spot bitcoin ETFs in their first three days of trading, data shows. Asset management giant BlackRock’s iShares Bitcoin Trust ETF has attracted more than USD700 million, while Fidelity’s Wise Origin Bitcoin Fund has topped USD500 million, according to BitMEX Research. Bitwise said its inflows in the first three days totaled USD305.5 million, while the Ark/21Shares ETF has had inflows of nearly USD230 million.

The context: The strong inflows have come despite the price of bitcoin itself dropping more than 8% since 11 January, after rallying in recent months on anticipation that the ETFs would finally get the nod from the SEC. It is currently trading at USD40,785. For now, lower fees and name recognition appear to be key factors in drawing investors with fees among the nine issuers ranging between 0.19% to 0.39% before discounts. Trading began after the US Securities and Exchange Commission finally gave the green light late on Wednesday, following a decade-long tussle with the crypto industry.