Bitcoin ETFs Gain Momentum as Net Flows Exceed Supply Issuance
Spot bitcoin ETFs have made a strong start since their launch on January 11, 2024. With approval from prominent companies such as Bitwise, Grayscale, and BlackRock, among others, these funds have gained significant traction in the market. According to a recent report by CoinShares, net flow into U.S. spot bitcoin ETF products has surpassed the issuance of new bitcoins in their first month of activity.
The upcoming halving event, which will reduce bitcoin’s annual inflation rate to 1%, adds further potential for growth. If the current daily average net flow into U.S. ETFs is sustained, it would be 4.6 times higher than bitcoin’s average daily issuance after the halving.
BlackRock’s IBIT Fund Leads in Daily Inflow
Among the spot bitcoin ETFs, BlackRock’s IBIT fund stands out with the highest single-day net inflow of $493 million. This accounted for 70% of the total daily inflow into all funds. Meanwhile, Grayscale’s GBTC fund experienced a net outflow of $72.83 million on Tuesday, while other ETFs saw a total net inflow of $704 million on the same day.
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