Massive Bitcoin ETF Inflows Push BTC Price Towards $55K
On Monday, spot Bitcoin ETFs received a significant inflow of $493.3 million, marking the third-largest net inflow to date. This influx comes as the price of BTC surpasses $50,000. Experts predict that the BTC price rally will continue due to growing demand from Bitcoin ETFs and derivatives traders.
Spot Bitcoin ETF Sees $493.3 Million Inflow
The latest data on Bitcoin ETF flows reveals that the new nine and Grayscale’s GBTC spot Bitcoin ETF experienced a net inflow of $493.3 million on February 12. This strong start to the week indicates a positive market sentiment towards BTC.
BlackRock‘s IBIT recorded a record-breaking inflow of $374.7 million, bringing the total inflow for BlackRock Bitcoin ETF to over $4.126 billion. The asset holdings of BlackRock Bitcoin ETF now amount to $4.76 billion.
Fidelity‘s FBTC and Ark 21Shares‘ ARKB also saw significant inflows of $151.9 million and $40 million, respectively. Other ETFs like Bitwise (BITB) and VanEck (HODL) also experienced notable inflows. However, Invesco Galaxy Bitcoin ETF (BTCO) faced an outflow of $20.8 million.
Additionally, there was a $95 million outflow from GBTC, which is higher than Friday’s outflow of $51.8 million but consistent with last week’s range.
The net inflow for spot Bitcoin ETFs, excluding GBTC, totaled $589 million. The total inflows for BlackRock and Fidelity Wise Origin Bitcoin ETFs are $4.12 billion and $3.15 billion, respectively. These ETFs are purchasing 10,000 BTC per day on top of the standard equilibrium, contributing to the price appreciation.
Bitcoin Price Outlook
The price of BTC has surpassed $50,000 and has a high chance of reaching $55,000 due to the significant flow into Bitcoin ETFs. The Crypto Fear & Greed Index currently stands at 79, indicating “extreme greed,” the highest level since November 2021.
On Friday, Bitcoin ETFs witnessed a net inflow of $542 million as investors fear missing out on the rally towards the all-time high. Demand from Bitcoin ETFs and derivatives traders continues to rise while miner supply remains low. This shift in supply dynamics has made institutional investors highly optimistic about Bitcoin’s future.
Bitcoin derivatives traders are even placing call bets as high as $70,000 for the end of the month. Experts predict that if demand remains strong in pre-Bitcoin halving trades, new buyers may not have the opportunity to purchase BTC below $50,000.
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