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Spot Bitcoin ETFs Witness Significant Inflows
Spot Bitcoin (BTC) ETFs witnessed a substantial influx of approximately $2.3 billion last week, nearly doubling the previous week’s inflow of $1.2 billion. These inflows accounted for almost half of the total net inflow since the inception of BTC ETFs, which currently stand at approximately $5 billion.
Impact of BTC ETFs on Bitcoin’s Surge
According to Matteo Greco, research analyst at digital asset investment firm Fineqia International, the growing demand for BTC ETFs has fueled Bitcoin’s surge last week, which saw the leading cryptocurrency gain around 8% to close at approximately $52,150.
In a note shared with Cryptowire.com, Greco said that the positive net inflows have remained consistent for 16 consecutive trading days since January 26. However, there was a slight increase in outflows from the Grayscale Bitcoin ETF (GBTC) last week, reaching around $625 million. This indicates a rise in profit-taking by investors following the recent surge in BTC’s price.
Breakdown of Leading BTC ETFs
Among the ETFs launched on January 11, the Blackrock Bitcoin ETF (IBIT) leads the pack with over $5 billion in assets under management (AUM), totaling around $6.2 billion. The Fidelity BTC ETF (FBTC) follows closely in second place with approximately $4.5 billion AUM, while the 21Shares & ARK Bitcoin ETF (ARKB) secures the third position with roughly $1.5 billion AUM.
Trading Volume and Market Expectations
The trading volume of BTC ETFs remained robust, reaching approximately $9.6 billion cumulatively last week, with a daily average volume exceeding $1.9 billion. Since January 11, the cumulative trading volume has reached $45.3 billion, with an average daily volume of approximately $1.7 billion.
Looking at the macroeconomic landscape, market expectations for the upcoming Federal Open Market Committee (FOMC) meeting, scheduled 30 days from now, suggest a 90% probability of no change in rates. However, a 25bps cut is still anticipated between the end of Q2 and the beginning of Q3 this year, signaling a less restrictive monetary policy from the FED.
This expectation has led to increased risk exposure among market participants, contributing to the robust momentum of risk assets like BTC, cryptocurrencies, and stocks, with the S&P 500 recently achieving a new all-time high.
Comparison with Gold ETFs
As reported, gold ETFs have faced significant outflows this year, while ETFs tracking the spot price of Bitcoin have seen strong inflows. The leading 14 gold ETFs have experienced outflows of $2.4 billion in 2024 as of February 14. In contrast, preliminary data shows that the ten approved spot Bitcoin ETFs have attracted aggregate inflows of around $4 billion this year, reaching record volumes.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
