Bitcoin ETFs Witness Historic Inflows, Signifying Strong Investor Demand Ahead of Halving Event
Summary:
On February 8, Bitcoin ETFs saw their third-highest influx of $403 million, despite over $100 million in GBTC outflows. Since their January 11 launch, total ETF inflows have exceeded $2.1 billion. This surge coincided with Bitcoin's price exceeding $46,000, near the year's high. BlackRock led the ETF inflow with $204 million, surpassing Grayscale's $GBTC daily trading volume. The inflow signifies withdrawal of 8698.44 Bitcoin from the market into ETFs' cold storage, indicating strong investor demand. With the Bitcoin halving due in less than 70 days, this demand may propel Bitcoin into a new price discovery phase.
On the 8th of February, Bitcoin Exchange-Traded Funds (ETFs) underwent their third-highest surge, amounting to $403 million. This substantial increase occurred in spite of GBTC receding by more than $100 million. Since their debut on the 11th of January, the total influx into Bitcoin ETFs has surpassed $2.1 billion, highlighting a stout demand for Bitcoin in the market. The historic third significant surge coincided with Bitcoin's value surpassing $46,000, barely $2,000 shy of this year's utmost value.
BlackRock leads the pack in ETF inflow, having amassed $204 million. Fidelity trails behind with an inflow of $128 million. ArkInvests’ Bitcoin ETF noted the third-highest inflow valued at $86 million, followed by Bitwise at $60 million. The remaining seven ETFs accumulated $27 million collectively, while GBTC observed another outflow amounting to $102 million.
BlackRock’s IBIT ETF achieved a remarkable milestone by surpassing Grayscale’s $GBTC in daily trading volume. However, the aggregate trading volume of all 11 Bitcoin ETFs slipped beneath $1 billion for the first time since their launch.
Eric Balchunas, a senior analyst at Bloomberg, highlights that BlackRock's achievement in surpassing Grayscale in trading volume is noteworthy, as traditionally it would take a new fund between 5 to 10 years to rival the market's dominant entity in liquidity terms.
The enthusiasm and increasing demand from investors are evident in the positive flow towards Bitcoin ETFs. The net ETF inflow equates to about $403 million or 8698.44 Bitcoin being withdrawn from the market into Bitcoin ETFs' cold storage.
Bitcoin ETFs were authorized by SEC for listing on January 10th and trading commenced the following day. Since their debut, there's been skyrocketing trading volume, with daily trades exceeding a billion dollars, underlining robust investor engagement.
As the Bitcoin halving, set to reduce the market supply of Bitcoin by half from 6.25 Bitcoin per block to 3.125 Bitcoin, approaches in less than 70 days, the increasing demand from institutional investors coupled with the diminishing supply could propel Bitcoin into a new price discovery phase in the forthcoming bull market.
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Published At
2/9/2024 11:23:20 AM
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