Bitcoin ETFs Experience Continued Demand with Millions in Daily Inflows
Bitcoin ETFs have been attracting significant attention and investment, with daily net inflows reaching historical highs. According to SoSoValue, spot Bitcoin ETFs have seen a 14th consecutive day of net inflows, totaling approximately $339 million on February 14. This figure is only $300 million less than the previous day. Among the issuers, BlackRock received the largest inflow of $224 million, followed by Fidelity with $118 million in net inflows.
BlackRock and Fidelity are the leading Bitcoin ETF issuers, accumulating a combined total of $8.3 billion in net inflows since trading was authorized by the U.S. SEC. BlackRock alone has attracted $4.8 billion, while Fidelity follows closely with $3.5 billion. These two giants command an impressive $10 billion in assets under management (AUM) and have acquired over 200,000 BTC for their Bitcoin ETFs.
Crypto lawyer John E. Deaton believes that the surge in Bitcoin’s price can be attributed to the demand for spot BTC ETFs and substantial Bitcoin acquisitions by these issuers.
While BlackRock and Fidelity have been dominating the market, Grayscale’s GBTC ETF experienced another day of net outflows, amounting to $131 million. Since becoming an ETF on January 11, GBTC has seen a significant decrease in value, losing over $5 billion. Nevertheless, it remains the largest fund in terms of AUM, holding over $23 billion.
A U.S. bankruptcy court ruling may further impact Grayscale’s GBTC ETF as Genesis, a bankrupt crypto lender, has been approved to sell 35 million Grayscale shares worth around $1.6 billion.
Bitcoin ETFs Drive Cryptocurrency Market Cap
The growing interest in Bitcoin ETFs has had a positive impact on the overall cryptocurrency market capitalization. As of February 15, the crypto market was valued at over $2 trillion, according to CoinGecko. Bitcoin’s resurgence as a trillion-dollar asset has contributed significantly to this figure, accounting for more than half of the total market capitalization.
TradingView data confirms that BTC remains the dominant cryptocurrency, with a market share of 53%.
Key Takeaways:
- Bitcoin ETFs have seen a 14th consecutive day of net inflows, totaling approximately $339 million on February 14.
- BlackRock and Fidelity are the leading Bitcoin ETF issuers, accumulating a combined total of $8.3 billion in net inflows since trading was authorized by the U.S. SEC.
- Grayscale’s GBTC ETF experienced another day of net outflows, losing $131 million.
- The cryptocurrency market capitalization surpassed $2 trillion, with Bitcoin accounting for over half of this figure.
- BTC remains the dominant cryptocurrency with a market share of 53%.
Overall, the growing demand for Bitcoin ETFs is driving significant investment into cryptocurrencies. The success of BlackRock and Fidelity in attracting billions of dollars demonstrates institutional interest in digital assets. However, Grayscale’s GBTC ETF has faced challenges with ongoing outflows and potential sales due to bankruptcy proceedings. Despite these developments, Bitcoin’s resurgence has contributed to the overall growth of the cryptocurrency market cap.
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