Record Inflows for Bitcoin ETFs
Bitcoin exchange-traded funds (ETFs) experienced a massive net inflow of $673 million on February 28, marking the largest inflow since the approval of spot Bitcoin ETFs by the U.S. SEC in January. The trading volumes for all spot Bitcoin ETFs reached $8 billion, with BlackRock’s iShares Bitcoin ETF (IBIT) leading the pack.
BlackRock’s IBIT Breaks Records
The BlackRock iShares Bitcoin ETF (IBIT) recorded a net inflow of $612 million, breaking its previous record. Additionally, it shattered its trading volume record with $3.2 billion, surpassing the daily trade volume of most large-cap US stocks. Following this latest inflow, BlackRock’s net inflow surpassed $7.15 billion and its asset holdings exceeded $9 billion.
Other Bitcoin ETFs
The Fidelity Bitcoin ETF (FBTC) and Ark 21Shares Bitcoin ETF (ARKB) saw inflows of $245.2 million and $23.8 million respectively. Other spot Bitcoin ETFs like Bitwise (BITB) and Wisdomtree (BTCW) had lower inflows despite strong interest from retail and institutional investors.
On the other hand, GBTC experienced an outflow of $216.4 million, indicating investor exodus due to high fees. Bloomberg senior ETF analyst Eric Balchunas noted that the daily trading volume of nine new spot Bitcoin ETFs, excluding GBTC, surpassed the old record as fear of missing out (FOMO) drove a strong BTC price rally above $63K.
Vaneck Bitcoin Trust ETF (HODL) also saw an outflow of $3.4 million.
BTC Price Approaching $70,000
Wall Street investors are increasingly investing in Bitcoin ETFs as the returns on Bitcoin and Ethereum have outperformed oil, stock exchanges, gold, and other assets.
Meanwhile, the Crypto Fear & Greed Index has reached a 4-year high near 80, indicating that market sentiment is currently in the “Extreme Greed” zone.
The price of BTC has skyrocketed to over $63,000, just a few percent away from the previous high of $68.7K established 27 months ago. The 24-hour trading range for BTC is between $57,093 and $63,913. The trading volume has also increased by 150% in the last 24 hours, indicating growing interest among traders.
Futures and options open interests (OI) have reached record levels, with total options OI rising over 8% to $33.79 billion according to Coinglass data. Despite high funding rates, FOMO continues to drive Bitcoin price predictions of $100K by multiple experts.
Hot Take: Bitcoin ETFs Breaking Records Amidst Supply Shock
The recent inflows into Bitcoin ETFs highlight the growing demand for exposure to Bitcoin among institutional investors. The approval of spot Bitcoin ETFs by the U.S. SEC has opened up new avenues for investors to gain exposure to the cryptocurrency market.
The massive inflow of funds into BlackRock’s IBIT demonstrates the increasing interest in Bitcoin as an investment asset. The record-breaking trading volumes indicate strong market participation and support for Bitcoin ETFs.
On the other hand, GBTC’s outflow suggests that investors are seeking alternatives with lower fees. This highlights the importance of cost-effectiveness in attracting investor interest.
The rising price of BTC towards $70,000 is a testament to the supply shock in the market. As demand for Bitcoin outpaces supply, the price continues to surge. This trend is likely to continue as more institutional investors enter the market through Bitcoin ETFs.
Overall, Bitcoin ETFs have become a significant driver of the cryptocurrency market, attracting substantial inflows and pushing the price of BTC to new highs. As more investors seek exposure to Bitcoin, the market is expected to experience further growth and development.
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