February 14, 2024 – Spot Bitcoin Exchange-Traded Funds (ETFs) have witnessed a historic surge in net inflows, reaching a new milestone of over $631 million in a single day. This unprecedented influx, occurring on February 13, has been accompanied by a decrease in outflows from Grayscale’s recently converted GBTC fund.

A New Era for Bitcoin ETFs

As the crypto market evolves, the demand for spot Bitcoin ETFs has soared, with nine issuers, not including GBTC, experiencing a combined total of $704 million in inflows. This significant uptick reflects the growing investor appetite for cryptocurrency-backed exchange-traded products.

BlackRock Dominates the Market

BlackRock, a major player in the asset management space, has emerged as the predominant recipient of these inflows, securing a staggering 70% of the total, which amounts to $493 million in trading volume, as reported by sososvalue.xyz.

Historical Highs and Consistent Growth

The investment community took notice on February 13 as spot Bitcoin ETFs hit a historical peak, marking the 13th day of consistent net inflows since the U.S. SEC’s approval in early January.

Grayscale’s GBTC Sees a Shift

Grayscale’s GBTC, the sole close-ended fund to transition into a spot BTC ETF, initially experienced substantial outflows, predominantly from large single entities like the now-defunct FTX. However, recent data indicates that GBTC’s net outflows have been reduced to $72 million. Despite this, Grayscale maintains a significant position, holding over 467,000 BTC in its GBTC ETF.

Impact on Bitcoin’s Market Value

The burgeoning demand for spot Bitcoin ETFs has also coincided with a bullish trend in Bitcoin’s market price. The leading cryptocurrency recently hit a 25-month high by surpassing the $51,000 threshold, a testament to the market’s renewed confidence.

Bitcoin’s Market Cap Reaches New Heights

With a more than 20% increase in value over the past week, Bitcoin has reclaimed its status as a trillion-dollar asset. The digital currency now stands among the giants of the market, approaching its $69,000 all-time high.

Inflows and Market Dynamics

According to Scott Melker, a well-known Bitcoin advocate, the reason behind Bitcoin’s price increase is straightforward: the influx of buyers exceeds the number of sellers, driven in part by the massive inflows into ETFs.

Stay tuned for more updates on this developing story as we continue to monitor the impact of ETF trends on the cryptocurrency market.