New Bitcoin ETF Inflows Drive Market Growth
A surge in Bitcoin ETF establishment resulted in a massive inflow of over $631 million on February 13. This influx occurred alongside a decline in GBTC redemptions, as investors shifted their preference to spot Bitcoin ETFs. This change has played a role in pushing the price of Bitcoin back up after a stagnant period. In May 2021, Bitcoin finally crossed the $51,000 mark.
Unprecedented Inflows and Market Impact
On February 13, spot Bitcoin ETFs experienced record inflows, with nine providers raising $704 million. BlackRock, the leading global investment management corporation, accounted for 70% of these inflows, totaling $493 million. This demonstrates a growing demand for crypto-backed exchange-traded funds.
Grayscale Bitcoin ETF Stabilizes Amidst Boom
The transition of Grayscale’s GBTC into a spot Bitcoin ETF marked a significant milestone. Despite initial outflows of over $4 billion, largely due to FTX’s liquidation, GBTC has stabilized with only $72 million in net outflows. Grayscale remains a major player in the Bitcoin market.
Spot BTC ETFs Drive Liquidity and Accessibility
The shift towards spot BTC ETFs has increased liquidity and accessibility for Bitcoin investments. CoinShares analysts have highlighted significant inflows totaling $4 billion since the launch of these ETFs, indicating growing investor confidence and demand for Bitcoin-backed financial products.
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