In a significant financial milestone, Ark 21Shares’ ARKB Bitcoin ETF has reached over $1 billion in assets. This achievement makes it the third Bitcoin exchange-traded fund (ETF) to surpass the billion-dollar threshold in assets under management (AuM).
Ark Invest announced this on 9 February, emphasising the growing confidence and interest in digital currencies.
“This isn’t just a number – it’s a testament to the growing trust and interest in digital assets”, stated the asset management company.
Bloomberg ETF analyst James Seyffart weighed in as well, talking about the substantial influx of funds experienced by Ark recently. He compared ARKB’s performance with that of Bitwise’s BITB, which is also on an upward trajectory with assets nearing $830 million.
Record inflows and market confidence
The cryptocurrency market witnessed significant activity, with Ark 21Shares reporting a massive $135.5 million in Bitcoin inflows at the end of the last week.
This surge reflects a robust demand for Bitcoin investments among investors.
Fidelity’s Bitcoin ETF also saw a record investment day, with inflows reaching $188.4 million. This was marked as the highest investment for the firm within the week.
Conversely, Grayscale, which was once the leader with its early advantage and established presence in the crypto space, experienced the week’s lowest outflows at $51.8 million.
The growing appeal of Bitcoin ETFs
The appeal of Bitcoin ETFs is further underscored by the performance of BlackRock (IBIT) and Fidelity (FBTC) ETFs.
According to ETF analyst Eric Balchunas, both ETFs have amassed more than $3 billion each in assets, despite not trading for a full month.
These remarkable achievements highlight the clear demand for Bitcoin-based ETFs compared to other asset classes.
However, the cryptocurrency market will not see Bitcoin ETF advertisements at this year’s Super Bowl, as noted by ETF Store President Nate Geraci.
The decision, influenced by the high costs and relatively low ETF expense ratios, underscores the financial considerations in marketing strategies.
Despite the absence of Super Bowl advertising, the cryptocurrency market ended the week on a high note, with its total valuation reaching $1.87 trillion, the highest since April 2022.
Bitcoin’s ($BTC) price saw a significant increase, reaching a monthly peak of $48,000 and approaching key resistance levels. However, the top coin is down in price at the time of press, down from its recent peak.
Analysts are also forecasting that the swift increase in Bitcoin assets held by ETFs might soon outpace MicroStrategy, currently the largest corporate investor in Bitcoin. This speculation is based on the remarkable growth observed in the holdings of Bitcoin ETFs.
According to JPMorgan analysts, the liquidity metrics of BlackRock and Fidelity’s Bitcoin ETFs could surpass those of the Grayscale Bitcoin Trust (GBTC). This related to a stronger market presence for these ETFs, offering broader market access and enhanced price stability in comparison to their net asset values.
Furthermore, the analysts emphasised the critical issue of fees with GBTC. They suggested that unless GBTC reduces its fees, it is likely to experience continued outflows, with investors preferring the more competitively priced ETFs offered by BlackRock and Fidelity. This shift could significantly impact GBTC’s market share in favour of these emerging Bitcoin ETFs.