The third-highest day of inflows for spot Bitcoin ETFs occurred as Bitcoin’s price surged past $46,000, reaching a new multiweek peak, coming close to but staying $2,000 below its yearly highs.
On February 8th, spot Bitcoin exchange-traded funds (ETFs) experienced their third-largest surge, reaching a substantial £403 million influx. This surge occurred despite over £100 million exiting the Grayscale Bitcoin Trust (GBTC). Since their introduction on January 11th, total inflows into spot Bitcoin ETFs have surpassed £2.1 billion, highlighting robust demand for BTC in the market.
This significant inflow coincided with Bitcoin’s price surpassing $46,000, marking a fresh multiweek high and coming close to new yearly highs, falling just £2,000 shy. Leading the ETF flow chart was BlackRock iShares Bitcoin Trust (IBIT) with an inflow of £204 million, followed by Fidelity with £128 million, ARK 21Shares with £86 million, and Bitwise with £60 million. The remaining seven ETFs collectively saw £27 million in inflows, while GBTC recorded another £102 million in outflows.
IBIT also achieved the distinction of becoming the first ETF to surpass GBTC’s daily trading volume. However, the total trading volume of all 11 spot Bitcoin ETFs dipped below £1 billion for the first time since their inception. Bloomberg senior analyst Eric Balchunas highlighted BlackRock’s overtaking of Grayscale in trading volume as a significant achievement, noting that it typically takes about five to 10 years for a new fund to surpass the category’s “liquidity king.”
Market analysts interpret the positive flow into Bitcoin ETFs as indicative of investors’ appetite and growing demand. The net flows into the ETFs imply that approximately £403 million, or roughly 8,698 BTC, was withdrawn from the market and transferred into cold storage.
Spot Bitcoin ETFs received approval from the United States Securities and Exchange Commission for listing on January 10th and commenced trading the following day. Since their launch, spot BTC ETFs have witnessed record trading volumes, with over a billion dollars traded daily, indicating robust investor interest.
The forthcoming Bitcoin halving is less than 70 days away, which will halve the market supply of BTC from 6.25 BTC per block to 3.125 BTC. With mounting demand from institutional investors, the dwindling supply could propel BTC to reach new market highs.
