Bitcoin ETFs Hit $4 Bln Net Inflows, Will Impact On BTC Price Continue?

Spot Bitcoin ETFs have noted massive inflows lately with $4 billion in net inflows to date. Moreover, on Tuesday, February 13, the largest single-day net inflow of $631 million was recorded for the 11 Bitcoin ETFs. The influx of capital into these funds has led to a positive shift in the Bitcoin price recently.

Will The Surge In Bitcoin ETF Inflow Continue Impacting BTC Price?

In a recent analysis by renowned crypto analyst Ted Talks Macro, the impact of net inflows from Spot Bitcoin ETFs on the market has been highlighted. Since February 5, 2024, with net inflows totaling $2.38 billion into Spot ETFs, Bitcoin’s price has surged from $42.6k to $49.6k. Ted Talks Macro breaks down the numbers to reveal a fascinating correlation that for every $1 billion in net inflows, Bitcoin’s price has increased by around $2,900.

Drawing attention to the daily average net inflow of approximately $265 million, Ted Talks Macro suggests that this influx theoretically translates to a daily price increase of around $768 for Bitcoin. With the Bitcoin price currently approximately $20,000 away from its all-time high, Ted Talks Macro calculates that at the current rate of net inflows, it could take around 26 days to reach new ATHs.

To give an idea as to just what impact net inflows from spot Bitcoin ETFs are having on this market, here's some quick and rough math based on current net flow numbers 👇

I'm using numbers since February 5th (by this time, grayscale outflows had truly flatlined and this helps… pic.twitter.com/muXekTF2Hy

— ted (@tedtalksmacro) February 14, 2024

However, Ted Talks Macro provides important disclaimers, noting that such high levels of net inflow may not be sustainable indefinitely. Additionally, the analysis acknowledges the simplification of assuming a linear relationship between flows and Bitcoin price, which he used only for illustrative purposes, and the dynamic nature of the market could indicate otherwise.

Also Read: Breaking: Spot Bitcoin ETFs Saw Largest Single-Day Inflow, BTC Rally to $60K?

Recent Inflow Data

According to statistics from Farside, the iShares Bitcoin ETF (IBIT) managed by BlackRock saw a remarkable surge in investments, with a whopping $493 million influx recorded on Tuesday. BlackRock has significantly outpaced its competitors in this regard. Following closely behind, Fidelity recorded the second-highest inflow on Tuesday, amounting to $163 million.

Conversely, the outflows from Grayscale’s GBTC have notably decelerated, remaining below $100 million over the past three days of this week. Overall, Bitcoin ETFs have witnessed a net inflow of $3.7 billion. BlackRock, the asset management giant, has observed a net inflow of $4.6 billion, whereas GBTC has experienced net outflows totaling $6.5 billion.

Earlier, on Monday, February 12, the Spot Bitcoin ETFs acquired approximately ten times more Bitcoin than what miners generated. Initial data suggests that these Spot ETFs obtained at least $493.4 million, equivalent to about 10,280 BTC. In comparison, Bitcoin miners produced around 1,059 BTC valued at roughly $51 million on the same day, representing only 10% of the amount accumulated by Spot ETFs.

Also Read: Bitcoin Price Pre-Halving Rally: Can Spot ETFs Weather The Storm As CPI Report Shakes BTC