Bitcoin ETFs Accumulate $17bn in BTC Amid Predicted Bullish Market Growth
Summary:
Bitcoin exchange-traded funds (ETFs) have proven their market strength, amassing 300,000 Bitcoins, equivalent to $17 billion, in less than two months since they were publicly launched on January 11. Despite steady outflows from Grayscale's GBTC, the net inflow to Bitcoin ETFs has surpassed $6 billion, indicating robust market demand. With the Bitcoin halving event on the horizon, the shrinking supply coupled with boosting demand for these ETF products paints an optimistic future for Bitcoin's price.
In the short span of two months since their public unveiling on January 11, the nine active Bitcoin exchange-traded funds (ETFs) have gathered a staggering 300,000 bitcoins. This equates to an approximated $17 billion. The ETFs managed to gather net inflows exceeding $6 billion concerning spot Bitcoin. The collected Bitcoin of these nine ETFs stands at nearly 1.5% of Bitcoin's overall supply of 21 million BTC. Amid the rising demand and finite availability, the price of Bitcoin managed to exceed a new yearly high of more than $57,000. Bitcoin currently stands at a 20% decrement from its highest peak of almost $69,000, with its market capitalization exploding past $1.1 trillion.
Spot Bitcoin ETFs didn't just stop there; they steadily extended their bullish impulse, amassing over half a billion dollars in net inflow this Monday. They also posted a record high trading volume of $2.4 billion, bypassing their previous record of $2.2 billion that occurred on their first day of trading, January 11.
Topping the volume charts stands BlackRock's IBIT with a staggering $1.29 billion, with Fidelity's FBTC following closely in second place at $576 million. Meanwhile, despite ongoing high inflows into spot Bitcoin ETFs, Grayscale's GBTC reported a reduced outflow, recording just $22 million — its lowest yet, signifying its third consecutive day of declining net outflows.
Conversely, Grayscale's Bitcoin ETF remains the sole fund suffering from consistent net outflows since its inception, mostly due to the aggressive offloading of GBTC shares by FTX and other firms. Outflows from GBTC neared a massive $5.64 billion by the end of January. These outflows have, however, reduced in February, totaling $2 billion so far, and summing to a total of $7.6 billion withdrawn since GBTC's conversion.
The persistent net inflows in the face of decreasing GBTC outflows suggest a sturdy market conviction for the spot Bitcoin ETF offerings. This could spur additional demand amid the dwindling supply of Bitcoin, particularly with the Bitcoin halving event approaching in less than two months.
Presently, miners add a total of 900 new bitcoins daily to the existing pool. However, spot Bitcoin ETFs are witnessing net inflows of about 8,000 to 9,000 bitcoins every trading day. In light of the Bitcoin halving event, Bitcoin supply will further shrink as demand continues to soar — a scenario viewed as highly optimistic for Bitcoin's price trajectory.
Published At
2/27/2024 3:38:57 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.