Spot Bitcoin ETFs Experience Strong Inflows
Spot Bitcoin exchange-traded funds (ETF) have seen significant inflows this week, with $520 million coming in on Monday and another $577 million on Tuesday. The largest inflow was from BlackRock iShares Bitcoin ETF, which alone saw an inflow of $520 million. This suggests a high chance of a BTC price rally to $60,000.
BlackRock Leads the Way
The BlackRock iShares Bitcoin ETF (IBIT) had a record-breaking inflow of over $520 million, surpassing its previous highest inflow. IBIT also saw a trading volume of $1.3 billion, higher than the daily trade volume of most large-cap US stocks. With this latest inflow, BlackRock’s net inflow has now exceeded $6.5 billion, and its asset holdings have reached over 141,000 BTC.
Other spot Bitcoin ETFs also experienced substantial inflows:
- Fidelity Bitcoin ETF (FBTC) – $126 million
- Ark 21Shares (ARKB) Bitcoin ETF – $5.4 million
- Bitwise (BITB) – undisclosed amount
- VanEck (HODL) – undisclosed amount
This influx of funds into spot Bitcoin ETFs indicates strong bullish sentiment among both retail and institutional investors.
GBTC Sees Outflow
In contrast to the inflows into spot Bitcoin ETFs, Grayscale’s GBTC saw an outflow of $125.6 million on Tuesday, following Monday’s outflow of $22.4 million. This dashed hopes of a paradigm shift in GBTC’s performance. The daily trading volume of the nine new spot Bitcoin ETFs, excluding GBTC, exceeded $2 billion for the second consecutive day, as the BTC price remains strong above $57,000.
BTC Price Breaks $59,000
The price of BTC has surged above $59,000, bringing it within 15% of its all-time high of $68,600 set 27 months ago. In the past 24 hours, BTC’s low and high were $56,219 and $59,000, respectively. The trading volume has also increased slightly, indicating continued interest from traders.
The Crypto Fear & Greed Index has reached a four-year high value of 82, signaling extreme greed in the market sentiment. This has generated significant FOMO among traders on Wall Street who have a strong interest in BTC. Experts had predicted that BTC’s price would reach $60,000 before the next bitcoin halving event.
Good morning,#Bitcoin is above $58K, where funding rates are going through the roof.
Astonishing strength, definitely areas to start looking for profits. pic.twitter.com/WXRzkEkaBA
— Michaël van de Poppe (@CryptoMichNL) February 28, 2024
Hot Take: Spot Bitcoin ETFs Fuel BTC Price Surge
The influx of funds into spot Bitcoin ETFs, particularly the record-breaking inflow into BlackRock iShares Bitcoin ETF, has contributed to the recent surge in BTC’s price. With strong bullish sentiment among retail and institutional investors, BTC has broken above $59,000 and is closing in on its all-time high. The market sentiment is currently driven by extreme greed, as indicated by the Crypto Fear & Greed Index. Traders on Wall Street are experiencing FOMO and showing a high level of interest in BTC. It remains to be seen if BTC can reach $60,000 before the next halving event.
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