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Bitcoin ETFs Reach $10B in AUM One Month After Approval


 Bitcoin exchange-traded funds (ETFs) have seen an astounding $10 billion in assets under management (AUM) within their initial 20 days of trading, underscoring the robust investor interest in this innovative investment avenue.

Leading the pack are BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund, with holdings of $4 billion and $3.4 billion respectively. Additionally, the ARK 21Shares Bitcoin ETF recently surpassed $1 billion in assets on February 10. While Grayscale Bitcoin Trust (GBTC) has seen outflows, the rate has slowed, with its smallest daily withdrawal recorded on February 9. Analysts expect further expansion as trading firms complete their assessments of these investment options.

ARK Invest, known for its optimistic outlook, foresees Bitcoin displacing gold as a safe haven asset, foreseeing sustained price appreciation owing to its increasing significance in financial markets. They argue that Bitcoin's antifragile nature will enable it to withstand rising interest rates and inflation, offering a distinct advantage in the prevailing macroeconomic environment.

The recent Securities and Exchange Commission (SEC) approval of Bitcoin ETF applications, following more than a decade since the initial proposal, marks a significant milestone. This development signifies not only the growing institutional acceptance of Bitcoin but also a potential shift in investors' perception of it as a store of value.