In just the first four days of trading, BlackRock’s spot bitcoin exchange-traded fund (ETF) accomplished a remarkable feat. It amassed $1 billion in assets. This achievement sets a notable benchmark among the numerous recently launched ETFs that track bitcoin spot prices, as reported by J.P. Morgan data.
Regulatory Approval Boosts Cryptocurrency ETFs
After enduring years of regulatory scrutiny, the US Securities and Exchange Commission (SEC) recently granted approval to nearly a dozen ETFs that monitor the world’s largest cryptocurrency.
Leading the Inflows: BlackRock and Fidelity
Since their respective launches, BlackRock and Fidelity have garnered the lion’s share of inflows. Lower fees and strong brand recognition appear to be key factors attracting investors to these funds.
Top Bitcoin ETFs by Assets
As of January 17, the iShares Bitcoin ETF from BlackRock had accumulated assets under management totalling $1.07 billion. Furthermore, the Fidelity Vise Origin Bitcoin ETF is closely trailing at $874.6 million, according to J.P. Morgan data.
In the first four days of trading, nine recently launched ETFs collectively attracted $2.90 billion in investment flows.
Challenges for Grayscale Bitcoin Trust
However, the Grayscale Bitcoin Trust, which transitioned from a closed-end fund to an ETF, charged the highest fee compared to the newly launched ETFs and faced an outflow of $1.62 billion in its initial four days.
Growing Investments in Manufacturing Startups and Energy Storage Tech
In a separate development, the global platform Dealroom reported that European startups secured slightly over $18 billion in venture capital (VC) investments in the third quarter. This marked a 27% increase from the second quarter.
VC Preferences and Investment Trends
VC funds currently exhibit a preference for startups focused on physical products over software companies and those engaged in “climate” technology. Consequently, the bulk of investments in the third quarter flowed into companies like Northvolt, H2 Green Steel, Zenobe Energy, and Vercor.
Shift in Funding Phases
Moreover, there’s a notable shift in funding phases within European startups. More companies are securing support during the breakout phase, involving investments ranging from $15 million to $100 million. In contrast, a smaller percentage is recorded in the late stages of financing, typically necessitating over $100 million in investments.
Key Areas of Investment
VC investments in Europe are particularly concentrated in energy storage, clean energy projects, and biotechnology. These sectors accounted for the majority of the $18 billion invested in the third quarter, with energy storage and clean energy projects leading the way.
