'Simply Absurd': Bitcoin ETF Holdings Top $55B, Stun Star Analyst Just Weeks Following Approval

Bloomberg Senior ETF Analyst Eric Balchunas marveled at the inflows spot Bitcoin BTC/USD exchange-traded funds experienced in the first two months following their launch, calling them "simply absurd."

What Happened: In a series of tweets, Balchunas noted the 10 existing Bitcoin ETFs now hold over $55 billion in assets, with double that amount, $110 billion, having already traded hands this year.

Balchunas further emphasized the significance of this achievement, stating, "If these were the numbers at the end of the year I'd call them a success. To do it in eight weeks is simply absurd."

Balchunas also highlighted the unexpected rise of the ProShares Bitcoin Strategy ETF IBIT and the Fidelity Wise Origin Bitcoin Fund FBTC, which currently ranked as the number three and number four in terms of year-to-date inflows among all ETFs, rubbing shoulders with established giants such as Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV and Vanguard Total Stock Market ETF VTI.

Why It Matters: Digital asset investment products experienced a surge in popularity, with record weekly inflows totaling $2.7 billion, pushing year-to-date inflows to a staggering $10.3 billion.

This figure sits just shy of the record $10.6 billion recorded for the entirety of 2021. These inflows were accompanied by a surge in overall activity.

Weekly trading turnover reached a record $43 billion, surpassing the previous record of $30 billion set just a week prior, according to a Coinshares report.

Recent price gains have further fueled the fire, with total assets under management (AuM) reaching a record high of $94.4 billion.

This represented a 14% increase over the last week and a staggering 88% increase year-to-date.

The U.S. Leads The Charge: The U.S. emerged as the clear leader in terms of inflows, contributing $2.8 billion.

Switzerland and Brazil followed distantly with $21 million and $18 million, respectively.

Not all regions experienced the same level of enthusiasm. Canada, Germany, and Switzerland all saw some profit-taking, with outflows of $35 million, $77 million, and $39 million, respectively.

Bitcoin Remains King: Bitcoin BTC/USD continued as the primary focus for investors, attracting $2.6 billion in inflows this week.

Year-to-date inflows for Bitcoin now represented a significant 14% of total AuM.

Interestingly, despite recent price increases, inflows into short Bitcoin products persisted, with an additional $11 million recorded last week.

Also Read: Michael Saylor Sees Zero Catalysts That Could Bring Bitcoin Prices Down: 'We're Just Waiting For The Rest Of The World To Realize'

Beyond Bitcoin: A Broader Market Emerges: While Bitcoin dominated, other digital assets experienced renewed interest.

Solana SOL/USD, which recently faced negative sentiment, saw a welcome return of investment with $24 million in inflows last week.

Ethereum ETH/USD, on the other hand, saw minor outflows of $2.1 million despite a strong year-to-date performance.

Other notable inflows include Polkadot DOT/USD ($2.7 million), Fantom FTM/USD ($2 million), Chainlink LINK/USD ($2 million) and Uniswap UNI/USD ($1.6 million).

Image created using artificial intelligence with Midjourney.