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Continued Demand for Bitcoin ETFs

As the crypto market cap crosses the impressive $2 trillion mark, Bitcoin Exchange-Traded Funds (ETFs) are witnessing a historic surge in demand. Notably, the market has observed 14 consecutive days of net inflows into Bitcoin ETFs, with the 14th day alone attracting approximately $339 million, as reported by SoSoValue on February 14.

Major Players Leading the Charge

Investment management corporations BlackRock and Fidelity are spearheading this growth, having claimed the lion’s share of inflows. BlackRock’s inflow reached $224 million, while Fidelity garnered $118 million. These two financial behemoths have accumulated a staggering $4.8 billion and $3.5 billion, respectively, in cumulative inflows since the SEC green-lighted Bitcoin ETF trading.

The combined Assets Under Management (AUM) for these firms is nearing $10 billion, reflecting the acquisition of over 200,000 BTC by nine issuers for Bitcoin ETFs. The demand for spot BTC ETFs and significant Bitcoin purchases by issuers are contributing factors to Bitcoin’s price rally, as noted by cryptocurrency experts like John E. Deaton.

Contrasting Fortunes

While BlackRock and Fidelity enjoy the influx of capital, Grayscale’s GBTC ETF continues to face challenges, with a net outflow of $131 million. Since its transition to an ETF on January 11, GBTC has experienced a decline of over $5 billion. Nevertheless, it still holds the largest AUM in the space, with more than $23 billion.

A recent court ruling may lead Grayscale to divest an additional $1.6 billion from its GBTC ETF. The sale of 35 million Grayscale shares was authorized by Judge Sean Lane in the bankruptcy case of crypto lender Genesis.

Market Impact and Outlook

The enthusiasm surrounding Bitcoin ETFs appears to be a driving force in the overall cryptocurrency market. Coinciding with the surge in ETF interest, Bitcoin’s value has seen a significant uptick, contributing to the broader market capitalization growth. As of February 15, CoinGecko values the crypto market at over $2 trillion, with Bitcoin alone boasting a market share of 53% thanks to its trillion-dollar valuation, as confirmed by TradingView data.

You might also be interested in reading about the record daily net inflows of $631 million into spot Bitcoin ETFs and how this interest has catalyzed the growth of the crypto market cap.


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