Bitcoin ETFs Record Third Largest Inflow as Bitcoin Reaches $46,000

On February 8, spot bitcoin ETFs experienced their third largest inflow, totaling 403 million dollars. Significant inflows occurred despite over 100 million dollars exiting the Grayscale Bitcoin Trust (GBTC).

Total inflows into spot bitcoin ETFs have already surpassed 2.1 billion dollars since their launch on January 11, indicating strong demand for bitcoin in the market. The third largest inflow day for ETFs caused bitcoin to reach 46,000 dollars again, marking a new multi-week high just 2,000 dollars shy of new annual highs.

BlackRock iShares Bitcoin Trust (IBIT) led with an inflow of 204 million dollars, Fidelity accounted for 128 million dollars, ARK 21Shares 86 million dollars, and Bitwise 60 million dollars. The other seven ETFs collectively recorded 27 million dollars in inflows, while GBTC saw an additional 102 million dollars in outflows.

IBIT also became the first ETF to surpass the daily trading volume of GBTC. However, the total trading volume of all 11 spot bitcoin ETFs fell below 1 billion dollars for the first time since their launch.

Senior Bloomberg analyst Eric Balchunas noted that BlackRock’s overtaking of Grayscale in terms of trading volume is a significant achievement, considering it typically takes five to ten years for a new fund to surpass the ‘king of liquidity’ in the category.

Market experts view the positive flow into bitcoin ETFs as a sign of appetite and growing demand from investors. Net flows into ETFs mean that approximately 403 million dollars, or about 8,698 bitcoins, have been ‘taken off’ the market and sent to a safe haven.

Spot bitcoin ETFs received SEC approval for listing on January 10 and began trading the following day. Since their launch, ETFs have recorded record trading volumes, with over a billion dollars traded daily, indicating strong investor interest.

The next halving of bitcoin is set to occur in less than 70 days, which will halve the new market supply entering circulation from 6.25 to 3.125 bitcoins per block. With growing demand from institutional investors, the decreasing supply could help bitcoin reach new market peaks.