In just one week, Bitcoin ETFs have attracted a substantial inflow of $2.2 billion, as reported by recent findings from BitMEX Research. This influx underscores a growing interest in cryptocurrency as a viable investment avenue.
Here is the image again, if you can’t see the original https://t.co/TphjGxSaOx pic.twitter.com/03cNf7eeRH
— BitMEX Research (@BitMEXResearch) February 17, 2024
Specifically, from February 12 to February 16, Bitcoin spot ETFs witnessed significant investment, setting a new record for the highest capital influx into any U.S.-based exchange-traded product within that time frame. Leading the pack was BlackRock’s IBIT, which drew in over $1.6 billion, contributing to its overall net flows reaching $5.2 billion. Fidelity’s FBTC and Ark Invest’s BTCO also saw noteworthy inflows, with the latter amassing over $1.3 billion since January 11, when spot Bitcoin ETF trading commenced in the U.S.
In contrast, Grayscale’s GBTC experienced a net outflow of around $623 million during the same week, marking an increase from the $411 million outflow observed in the preceding week. This disparity highlights the differing investor sentiments toward various cryptocurrency investment products. The positive impact of these inflows is reflected in the cryptocurrency market’s performance, with Bitcoin’s price reaching over $52,000 on February 15, its highest level in more than two years. This price surge aligns with a notable increase in trading volume among Bitcoin ETFs.
Reports from Santiment indicate a significant uptick in trading volume for Bitcoin ETFs since early February, with the seven leading spot ETFs witnessing daily trading volumes surpassing $1.8 billion in the first half of the month. This surge in trading activity correlates with Bitcoin’s recent price spike, crossing the $50,000 threshold. As the cryptocurrency market matures, the surge in Bitcoin ETF investments and trading volume signals a broader acceptance and integration of digital assets into traditional investment portfolios.