Bitcoin ETFs See Major Inflow as BTC Surpasses $46K”

Bitcoin ETFs See Major Inflow as BTC Surpasses $46K"

Bitcoin ETFs received their third-largest influx of capital totaling $403 million despite a significant withdrawal from GBTC.

The third-largest influx of capital for exchange-traded funds (ETFs) that invest in spot Bitcoin occurred on February 8th, with a total of $403 million.

Despite the removal of over one hundred million dollars from the Grayscale Bitcoin Trust (GBTC), this influx of capital for exchange-traded funds (ETFs) that invest in spot Bitcoin occurred on February 8th, totaling $403 million.

Investors placed the entire amount of money into spot Bitcoin. Since its inception on January 11, Bitcoin ETFs have already surpassed $2.1 billion, which indicates that there is a high demand for Bitcoin in the market.

While the price of Bitcoin reached a new multiweek high of $46,000, the third-largest inflow day for spot Bitcoin ETFs occurred.

This occurred only $2,000 short of new yearly highs.With an inflow of $204 million, BlackRock iShares Bitcoin Trust (IBIT) is at the top of the exchange-traded fund (ETF) flow chart.

Bitcoin ETFs See Major Inflow as BTC Surpasses $46K"
Bitcoin ETF inflows. Source: Farside

Fidelity comes in second with $128 million, ARK 21Shares with $86 million, and Bitwise with $60 million. There was a total of $27 million in inflows into the other seven exchange-traded funds (ETFs), while GBTC saw an additional $102 million in withdrawals.

IBIT was also the first exchange-traded fund (ETF) to surpass the daily trading volume of GBTC. Despite this the total trading volume of all eleven spot Bitcoin ETFs dropped below one billion dollars for the very first time since their inception.

Eric Balchunas, a senior analyst at Bloomberg, pointed out that the fact that BlackRock has surpassed Grayscale in terms of trading volume is a significant achievement. This is because it typically takes a new fund between five and ten years to surpass the “liquidity king” of the category.

Investors are showing an increasing hunger for Bitcoin ETFs, according to market analysts, who see this as a sign of expanding demand. Investors removed approximately $403 million, which is equivalent to approximately 8,698 BTC, from the market and placed it in cold storage, as indicated by the net flows into the ETFs.

Trading in spot Bitcoin exchange-traded funds (ETFs) began the following day after receiving approval for listing from the United States Securities and Exchange Commission (SEC) on January 10.

Since their introduction, spot Bitcoin exchange-traded funds (ETFs) have experienced unprecedented trading activity, with daily movements exceeding one billion dollars. This demonstrates a robust level of investor interest.

In fewer than seventy days, the second Bitcoin halving will take place, which will result in the market supply of Bitcoin being reduced by half, from 6.25 BTC per block to 3.125 BTC. Because of the increasing demand from institutional investors, the decreasing supply of Bitcoin could be a factor in the cryptocurrency reaching new market highs.