April 19, 2024
Bitcoin ETFs Experience Third-Largest Inflow Day as BTC Surges Above $46,000
Bitcoin ETF

Bitcoin ETFs Experience Third-Largest Inflow Day as BTC Surges Above $46,000

Spot Bitcoin exchange-traded funds (ETFs) witnessed a surge in investor interest on Feb. 8, marking their third-largest influx day, accumulating a staggering $403 million. This notable uptick in inflows occurred concurrently with Bitcoin’s price surpassing the $46,000 mark, reaching a new multi-week high.

Since their inception on Jan. 11, spot Bitcoin ETFs have attracted a total inflow exceeding $2.1 billion, underscoring robust demand for Bitcoin within the market. Despite a significant outflow of over $100 million from the Grayscale Bitcoin Trust (GBTC), investors demonstrated a strong inclination towards ETFs.

Leading the charge in ETF flow were BlackRock iShares Bitcoin Trust (IBIT) with an inflow of $204 million, followed by Fidelity at $128 million, ARK 21 Shares at $86 million, and Bitwise at $60 million. Additionally, other ETFs collectively received $27 million in inflows, while GBTC experienced an outflow of $102 million.

The ascent of IBIT to surpass GBTC’s daily trading volume signifies a remarkable achievement, typically requiring five to 10 years for a new fund to outpace the “liquidity king” in its category, according to Bloomberg senior analyst Eric Balchunas.

Market analysts interpret the positive flow into Bitcoin ETFs as indicative of growing investor appetite and demand. Approximately $403 million, equivalent to roughly 8,698 BTC, was withdrawn from the market and transferred into cold storage as a result of these net flows.

Spot Bitcoin ETFs secured approval from the United States Securities and Exchange Commission for listing on Jan. 10, commencing trading the subsequent day. Since their launch, these ETFs have experienced record trading volumes, with daily trades surpassing the billion-dollar mark, reflecting strong investor enthusiasm.

As the next Bitcoin halving looms within 70 days, reducing the market supply of BTC by half from 6.25 BTC per block to 3.125 BTC, anticipations are rife that the combination of institutional investor demand and dwindling supply could propel Bitcoin to reach new market highs.

In conclusion, the significant inflows into Bitcoin ETFs amidst a surging BTC price underscore a growing institutional interest in the cryptocurrency market, setting the stage for potential further market advancements in the near future.

Image by Jaydeep Joshi from Pixabay

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