Bitcoin ETFs See Strong Inflows, Fueling BTC Recovery
Spot Bitcoin exchange-traded funds (ETFs) have experienced significant inflows in the past week, surpassing other exchange-traded products (ETPs) in the United States. According to analysts at Bitfinex, ETFs recorded net positive inflows of over $2.2 billion for the second consecutive week between February 12 and 16. These inflows have contributed to BTC’s recovery after a brief fall following the release of Consumer Price Index (CPI) data.
BlackRock’s IBIT ETF Leads in Inflows
The majority of the inflows were directed towards BlackRock’s IBIT ETF, which gathered $1.6 billion. This fund has accrued $5.2 billion year-to-date (YTD), accounting for approximately 50% of the total net inflows across all of BlackRock’s ETFs. Fidelity’s FBTC saw the second-highest inflows, attracting $648.5 million last week. Ark Invest/21Shares’ ARKB and Bitwise’s BITB also saw significant inflows, accumulating $405 million and $232.1 million respectively.
Outflows from Grayscale’s GBTC Persist
On the other hand, Grayscale’s GBTC has experienced continued outflows, with investors withdrawing $624 million in the past week. Since its conversion from an over-the-counter product to an ETP in January, GBTC has witnessed capital depletion surpassing $7 billion.
BTC Reaches New Year-to-Date High
The steady inflows into spot Bitcoin ETFs coincide with BTC reaching a new year-to-date high of $52,900. This represents a 25% increase since the beginning of the year. Bitcoin’s current price level is significant, as it provided support in November 2021 before the market entered a bear season in 2022.
Over the past year, BTC has experienced a 130% increase and a growth of 207% since its November 2022 lows. However, it still trades 25% below its all-time high of $69,000.
Majority of BTC Supply Held at a Profit
The increase in BTC’s value has resulted in a majority of its supply being held at a profit, with only 11% of the total BTC supply purchased above $50,000 being held at a loss.
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