Spot Bitcoin ETFs recorded daily net inflows of $673 million, led by BlackRock’s IBIT.

adminFebruary 29, 2024

The U.S. spot Bitcoin exchange-traded fund recorded a record net inflow of $673.4 million on Wednesday, surpassing the previous high of $655.2 million set on its launch day on January 11.

BlackRock’s IBIT Spot Bitcoin ETF dominated flows, adding $612.1 million, the highest inflow to date, according to data from BitMEX Research. Fidelity’s FBTC came in second with $245.2 million, and Ark Invest 21Shares’ ARKB came in third with $23.8 million.

Despite record net inflows, there were $216.4 million outflows from Grayscale’s high-yield GBTC fund (the largest since Jan. 30) and $3.4 million from VanEck’s HODL products. The remaining funds each recorded inflows of less than $10 million on Wednesday.

Yesterday’s figures show total net inflows across all spot Bitcoin ETFs reached nearly $7.4 billion, according to BitMEX Research.

“There are new record inflows into the Cointucky Derby Bitcoin ETF! IBIT itself generated record revenues of $612 million. Bloomberg ETF analyst James Seyffart earned $673 million on a net basis. This surpassed the first-day record of $655 million. Additionally, IBIT’s assets exceeded $9 billion.”

BlackRock has over 150,000 BTC under management and Fidelity has over 100,000 BTC.

Following record inflows yesterday, BlackRock’s IBIT fund has reached more than 150,000. BTC

+6.94%
($9.4 billion) under management, and Fidelity’s FBTC assets exceed 100,000 BTC ($6.3 billion). According to K33 Research analyst Vetle Lunde.

I am managing BTC. Image: K33 Research.

Excluding Grayscale’s converted GBTC fund, the nine newly created spot Bitcoin ETFs currently have over 330,000 BTC in assets under management, with approximately 30,000 BTC ($1.9 billion) added in two days.

The US Spot Bitcoin ETF holds a total of 768,280 BTC ($4.8 billion), with net inflows of 149,080 BTC ($937 million) since launch. Assets held by Grayscale’s converted GBTC fund have fallen 29% since January 11, from about 619,000 BTC ($39 billion) to just under 441,000 BTC ($28 billion), according to CoinGlass data.

This is the BTC held by all US spot Bitcoin ETFs. Image: K33 Research.

Global net inflows for all Bitcoin exchange-traded products reached 6,038 BTC ($380 million) on Wednesday, according to Lunde. “Significant outflows from Volatility Shares and significant outflows from Purpose offset some of the impact of BlackRock’s massive $612 million inflow,” he said.

Bitcoin ETP daily flow by region. Image: K33 Research.

The global Bitcoin ETP currently holds 980,000 BTC ($61.6 billion) with nearly 1 million BTC under management, with 133,300 BTC ($8.4 billion) added so far this year, Lunde added.

Bitcoin managed by an investment vehicle. Image: K33 Research.

Spot Bitcoin ETF records daily trading volume

As The Block previously reported, U.S. spot Bitcoin ETFs also saw record trading volume on Wednesday as the price of Bitcoin soared to $64,000 before a correction.

ETFs recorded $7.61 billion in total volume on Wednesday, breaking the previous record of $4.54 billion set on Jan. 11, the first day of trading, according to The Block’s data dashboard.

BlackRock’s IBIT again led the market with trading volume of $3.32 billion. This is more than double the previous record. Grayscale’s GBTC generated $1.84 billion in volume and Fidelity’s FBTC generated $1.43 billion.

“The total number of transactions has also doubled,” Bloomberg ETF analyst Eric Balchunas said of the nine new spot Bitcoin ETFs. “There were over 500,000 individual transactions.” “IBIT alone > QQQ (Invesco ETF tracking Nasdaq-100 index).”

“Bitwise, Invesco, and ARK’s Bitcoin ETFs all broke individual trading volume records again today,” Balchunas added. “I asked some market makers and most said this volume is a function of natural demand versus algo/arbitrage type volume. To quote Buffalo Springfield, ‘Something’s happening here.’”

Currently, the cumulative trading volume of U.S. spot Bitcoin ETFs reaches $65.64 billion.

According to The Block’s price page, Bitcoin is currently trading at $62,486. The largest cryptocurrency by market capitalization rose another 5% in the last 24 hours. The price of Bitcoin is currently up more than 22% over the past week and 48% since the beginning of the year. This is 10% below the previous high of around $69,000 set in November 2021.

BTC/USD price chart. Image: Block/TradingView.

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adminFebruary 29, 2024