Spot Bitcoin ETFs See $403 Million Inflow
Spot Bitcoin ETFs experienced a significant inflow of $403 million on February 8th, marking their third-largest inflow to date. Since their launch early last month, Bitcoin ETFs have shown strong performance and have now surpassed $2 billion in total inflows. This reflects the market’s enthusiasm for these spot Bitcoin ETFs. Notably, the heavy flow of funds on Wednesday coincided with Bitcoin’s climb to $46k, reaching a multi-week high.
BlackRock iShares Bitcoin Trust Leads Inflow
The flow chart of ETFs reveals that BlackRock iShares Bitcoin Trust (IBIT) received an inflow of $204 million, making it the top performer. Fidelity followed closely behind with an inflow of $124 million, while ARK 21Shares recorded an inflow of $86 million. Bitwise had an inflow of $60 million. The aggregate inflows and outflows for the other seven ETFs amounted to $27 million. However, GBTC recorded an outflow of $102 million.
IBIT Surpasses GBTC’s Trading Volume
IBIT became the first ETF to surpass GBTC’s daily trading volume, which is considered a noteworthy achievement by ETF analyst Eric Balchunas. Typically, it takes several years for a new fund to challenge the liquidity leader in its category. However, IBIT achieved this milestone in less than a month.
Normally it takes 5-10yrs for a newborn to get even close to toppling a category’s liquidity king(s). $IBIT did it in under a month- trading more than both $GBTC and $BITO today. They’ll all go back and forth for a bit each day but over time the gap will grow. https://t.co/mml4KpFiPy
— Eric Balchunas (@EricBalchunas) February 8, 2024
BTC ETFs Outperform Gold ETFs
Darin Feinstein, the founder of Core Scientific and Blockcap, believes spot Bitcoin ETFs have brought significant advantages to traditional American traders. According to Feinstein, these ETFs offer a new tool with untapped potential. In comparison to commodities-based ETFs like gold ETFs, BTC ETFs are considered superior because they hold Bitcoin in a verifiable manner.
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Spot Bitcoin ETF ‘superior’ to gold ETF -Darin Feinstein
Spot Bitcoin ETFs are superior to other commodities-based ETFs as it verifiably holds BTC on immutable ledger.
Gold ETF, there is no way to know on a real-time basis if its really holding the gold or if it’s… pic.twitter.com/2FO1e4NbhH
— Akshayy.nft (@akshayynft) February 8, 2024
Feinstein emphasized that a BTC ETF provides proof through the Bitcoin network that it holds the cryptocurrency, making it a safer investment compared to other ETFs like gold ETFs where real-time verification of holdings is not possible. He also highlighted that spot BTC ETFs operate on an immutable ledger, providing the best accounting system ever available.
Bitcoin’s Transparency Advantage
Bitcoin’s transparency is one of its key advantages over commodities like gold. The Bitcoin Network offers transparency regarding the supply and circulation of bitcoins, while BTC has a capped supply of 21 million. In contrast, Feinstein argues that there is no trustworthy way to verify the procedures for storage, verification, auditing, and authentication of physical gold. The management details and exact location of physical gold are not as transparent as those of Bitcoin.
Disclaimer
The information provided in this article is not financial advice but is intended for educational, entertainment, and informational purposes only. Any investment decisions should be made based on individual risk tolerance and due diligence. Bitcoin and other cryptocurrencies are high-risk investments. We are not responsible for any losses incurred as a result of investments related to the information provided.
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