Spot Bitcoin ETF: Ark Invest Joins the $1B AUM Club

The spot Bitcoin ETF issued by the duo of ARK Invest and 21Shares has finally joined the list of products with an Asset Under Management (AUM) of $1 billion.

The ARK 21Shares Spot Bitcoin ETF Record

As of February 9, 21Shares took to X announcing that ARKB, its joint spot Bitcoin ETF with ARK Invest, had registered more than $1 billion in its Bitcoin holdings. 

The asset manager attributed the figure to a growing trend of trust and interest in digital assets. In a screenshot attached to the post on X, certain details about the ARKB market outlook were outlined.

The total number of Bitcoins purchased by the duo is approximately 21,455 units, estimated to be $1,021,886,846 based on the current market value of Bitcoin. ARK 21Shares spot Bitcoin ETF has a 5-day average trading volume of $81,777,474 while its average spread within the same period is around 0.035%.

With this new AUM amassed by ARK 21Shares, Senior Bloomberg ETF analyst James Seyffart confirmed that ARKB is now the third United States spot Bitcoin ETF to cross the $1 billion threshold. 

Appears we have a 3rd US spot #Bitcoin ETF to cross the $1 billion mark. https://t.co/iBtr1iUfrW

— James Seyffart (@JSeyff) February 9, 2024

General ETF Market Outlook

Unlike ARKB which just hit this mark, BlackRock’s IBIT reached $1 billion in assets under management only four days into trading. IBIT became the first spot Bitcoin ETF to clinch the milestone amongst its counterparts that were greenlighted by the SEC. 

The volume of inflows that BlackRock has received so far is believed to be a function of its lower sponsor fee as well as its reputation prior to becoming a Bitcoin ETF Issuer.

Compared to Grayscale GBTC which has a management fee of about 1.5%, BlackRock’s fee is pegged at just 0.25%. 

Generally, the Bitcoin ETF ecosystem has had some good days and its numbers show for it. A total net inflow of $541.5 million was recorded on February 9, a move suggested to be associated with FOMO – the Fear of Missing Out. Bitcoin rallied by almost 7% within 24 hours, surpassing $48,000 briefly. Overall, the coin has had a price gain of 12% in this week.

At the time of this writing, the flagship cryptocurrency was trading at $47,289.80 with a 0.82% increase in the last 24 hours, cementing its mild uptrend since the start of the month.