From Investing.com:

A new batch of U.S. bitcoin exchange-traded funds (ETFs) has seen strong investor interest, attracting $1.9 billion in the first three days of trading. BlackRock and Fidelity’s ETFs pulled in most of the funds, with their collective flows surpassing those of other popular ETFs. Despite the hype, it remains to be seen if these ETFs will continue to attract investors and if they can outperform competitors. Market participants are hopeful that the funds could bring in between $50 billion and $100 billion by the end of the year. However, Bitcoin has dropped more than 8% since the ETFs launched on Jan. 11, following months of anticipation that they would receive the approval of the U.S. Securities and Exchange Commission (SEC). Some analysts are curious to see how the funds will fare in the long term and if their flows will be sustained. Lower fees and name recognition have been key factors in drawing investors to these new ETFs, with fees ranging from 0.19% to 0.39%. BlackRock is initially charging a fee of 0.12%, while Fidelity is charging zero until July 31. However, some analysts believe that fees will remain a crucial determinant of success for these funds.

The nine new ETFs have seen notable inflows, with BlackRock and Fidelity leading the pack. However, other issuers such as Bitwise and a joint venture of Ark Investments and 21Shares are not far behind and have initially waived their fees. On the other hand, the Grayscale Bitcoin Trust (GBTC) has experienced outflows due to its 1.5% fee. Some investors are selling their GBTC holdings and moving into the new, lower-cost ETFs.

The next hurdle for these funds will be to demonstrate their ability to win acceptance among institutional investors, such as pension funds, and investment advisers. The process of talking about what kind of allocation is appropriate and how spot bitcoin ETFs will work their way into model portfolios will come into focus in the next six months.



Read more: Spot bitcoin ETFs draw nearly $2 billion in first three days of trading By Reuters