A day earlier, the daily trading volume of bitcoin fund shares hit a record above $10 billion

Michael Saylor: BTC ETFs will surpass gold-based funds in terms of assets under management

07.03.2024 - 09:55

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4 min

What’s new? Michael Saylor, CEO of analytics software company MicroStrategy, believes that spot bitcoin exchange-traded funds (ETFs) will soon surpass gold-based ETFs in terms of assets under management, which are currently the largest commodity funds in the United States. He added that BTC ETFs from investment firms BlackRock (IBIT) and Fidelity (FBTC) have been more successful than he could have imagined.

Source: Twitter.com

What else is known? Since trading began in the US on January 11, cumulative inflows into the 10 spot BTC ETFs reached $8,89 billion, and assets under management have reached $53,11 billion.

The figure reached such a significant mark in less than two months despite being offset by outflows from Grayscale’s GBTC fund, which, unlike the other nine ETFs, is not new and previously operated as a bitcoin trust with no shares redemption option.

GBTC also charges the highest management fee compared to its competitors. Despite the constant outflow of funds, GBTC remains the largest in terms of bitcoins under management so far.

The leaders in terms of fund inflows and trading volume are BlackRock’s IBIT, Fidelity’s FBTC, ARKB from ARK Invest and 21Shares, and Bitwise’s BITB.

Daily trading volume for ten spot BTC ETFs hit a record above $10 billion

Daily trading volume for ten spot BTC ETFs hit a record above $10 billion

This may indicate the traders’ desire to fix profits on the background of the growth of the asset rate

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Michael Saylor noted that bitcoin funds will soon be able to compete with the SPDR exchange-traded fund based on the S&P 500 stock index from Standard & Poor’s, which tracks the 500 largest public companies by capitalization. The businessman previously said that the launch of a spot BTC ETF would be the biggest event on Wall Street since the launch of the SPDR in 1993.

Saylor characterized the ETFs as a “universal API” that allows investors to easily access BTC. “These ETFs opened up an entire financial world of awareness, opportunity, and functionality to the 99% of mainstream investors. You really can’t underestimate just how profoundly important that is to the entire network,” he concluded.

Earlier, Bloomberg analyst Eric Balchunas noted that if BTC ETFs increase assets under management by $10 billion every month, they could outperform gold funds as early as this summer. He added that such a figure is “pretty insane but very poss if BTC price complies.”

Notably, BTC ETFs outperformed silver-based funds in terms of assets under management just a week after trading began.

MicroStrategy plans to sell $600 million worth of securities to invest in BTC

MicroStrategy plans to sell $600 million worth of securities to invest in BTC

The funds will be issued in the form of convertible senior notes

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MicroStrategy is the largest holder of bitcoin among publicly traded companies. It recently increased its investment in the asset once again, bringing the amount of BTC in its accounts to 193 000 coins purchased for $6,09 billion. Given the current bitcoin exchange rate, MicroStrategy’s unrealized gains exceed $6,79 billion.

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