NewsletterBitcoin ETF Hit Record Inflows, Sparking Price Surge
Highlights
- Spot Bitcoin ETFs experienced record inflows of over $631 million in a single day on February 13, marking a significant shift in investor interest toward cryptocurrency.
- BlackRock captured the majority of these inflows, securing 70% of the total with an investment of $493 million, highlighting its dominant position in the market.
- The surge in investments into spot Bitcoin ETFs has contributed to Bitcoin's price crossing the $51,000 mark for the first time since May 2021.
A new frenzy of Bitcoin ETF establishment led to an enormous inflow to these funds on February 13, totaling over $631 million in a single gathering. This nifty inflow happened during the significant decline of GBTC redemptions, which has now turned into an ETF for the funding of spot Bitcoin. The switch in investor preference from spot Bitcoin ETFs has yet to be the cause of the market movers that have pushed Bitcoin price back in the upward trajectory after being stagnant for 25 months before finally crossing $51,000 in May 2021.
Unprecedented Inflows and Market Impact
The financial Bitcoin background underwent significant changes on Feb. 13, when Spot BTC ETFs reached record inflows in one day. Not considering the GBTC considerations, cryptocurrency-related nine spot ETF providers attained $704 million in lab raises, confirming a steady and growing demand for crypto-backed exchange-traded funds. In the aftermath of this volatility, the leading global investment management corporation – BlackRock – turned out to be the main one who steered the direction and took control of the majority of these inflows representing 70% of the volume at the jaw-dropping number of $493 million just on that particular day.
This latest influx of investment into spot Bitcoin ETFs under cases is the 13th day since trading started according to SEC rules on 11 January. Investors have been investing positively in the spot Bitcoin ETFs since the SEC approved them. Launching these ETFs has added a fresh channel for account holders to profile the digital instrument and take the lead role in the latest Bitcoin price advancement. Bitcoin’s market cap surged again above $1 trillion, illustrating its outstanding reinvention as a major asset in the Finance markets, near its ultimate record rate of $69,000.
Grayscale Bitcoin ETF Stabilizes Amidst Bitcoin Investment Boom
The transition of Grayscale’s GBTC into a spot Bitcoin ETF marked a significant milestone in the cryptocurrency investment landscape. Despite experiencing over $4 billion in outflows in the initial trading days, attributed largely to the liquidation by bankrupt crypto exchange FTX, GBTC’s recent activities have stabilized with only $72 million in net outflows reported. Grayscale remains a major player in the Bitcoin market, holding over 467,000 BTC for its ETF, starkly contrasting to the 216,000 BTC amassed by other issuers in less than three months.
The shift towards spot BTC ETFs has been a key driver in the increased liquidity and accessibility of Bitcoin investments, contributing to the digital currency’s price surge. Analysts from CoinShares have highlighted the significant inflows, totaling $4 billion since the launch of these ETFs, underscoring the growing investor confidence and demand for Bitcoin-backed financial products. This trend has enhanced the appeal of Bitcoin as an investment and reinforced its standing in the global financial market, rivaling major corporations and commodities in terms of market capitalization.
Read Also: Gary Gensler Reiterates Bitcoin’s Role in Ransomware, Post ETF Approval
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