Bitcoin ETFs Surpass $2 Billion Net Inflows in a Week

Bitcoin exchange-traded funds (ETFs) experienced robust growth in the week spanning from Feb. 12 to Feb. 16, with total inflows surpassing $2.2 billion.

Bloomberg analyst Eric Balchunas highlighted that this surge in inflows exceeded those of any other ETF among the 3,400 available in the United States.

BlackRock’s iShares Bitcoin Trust (IBIT) dominated the scene, attracting the lion's share of investments, with net positive flows reaching $1.6 billion for the week, according to data from BitMEX Research.

Balchunas pointed out that "$IBIT alone has taken in $5.2b YTD, which is 50% of BlackRock's total net ETF flows, out of 417 ETFs."

In the realm of spot Bitcoin ETFs, Fidelity’s Wise Origin Bitcoin Fund witnessed substantial investor interest, drawing in $648.5 million over the past five trading sessions.

Meanwhile, the Ark 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF received capital inflows of $405 million and $232.1 million, respectively, during the same period.

However, the Grayscale Bitcoin Trust experienced significant outflows totaling $624 million from Feb. 12 to Feb. 16, as investors continued to divest.

Since transitioning from an over-the-counter product to a spot ETF on Jan. 10, Grayscale’s fund has witnessed outflows exceeding $7 billion.

The introduction of these new ETFs is believed to be a contributing factor to Bitcoin’s recent price surge, with the cryptocurrency's value soaring by 91% over the past four months.

This surge has been buoyed by positive market sentiment following the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on Jan. 10.

Bitcoin's performance during the week saw a nearly 7% increase, with its current trading price at $51,434, marking a 24% climb for the month of February.

The emergence of these ETFs has caught the attention of major banks and financial institutions.

In a letter dated Feb. 14, a coalition of trade groups representing Wall Street’s largest firms urged the SEC to consider revisions to the Staff Accounting Bulletin 121, which provides guidance on accounting for crypto asset custody obligations. These proposed revisions would permit banks to serve as custodians for BTC funds.

Sources:

https://cointelegraph.com/news/bitcoin-etfs-posted-2-2b-net-inflows-february

https://twitter.com/BitMEXResearch/status/1758911218180301233