Bitcoin Spot ETFs: Issuers Set New Record As Weekly Inflows Cross $2.2 Billion

Scott Matherson

1 year ago

3 mins read

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Bitcoin spot exchange-traded funds have been online in the US for only two months, but their performance has far eclipsed any other asset class. These ETFs recently hit a new milestone, drawing over $2.2 billion in inflows last week alone, shattering the previous weekly record set on the first week of trading. This is a particularly noteworthy development because, as senior Bloomberg analyst Eric Balchunas pointed out, this inflow skyrocketed past the 3,400 plus ETFs available in the US, like the SPLG US and the SPY US.

Bitcoin ETF Inflows Surge Amid Competition

Bitcoin ETFs have fully captured the interest of institutional investors, with trading volume indicating their appealing nature. Trading volume statistics reveal these 10 ETFS have been experiencing a great deal of activity since their launch, netting more than $2.3 billion last week alone to bring the total inflow to $4.926 billion since they went live. As pointed out by Eric Balchunas, the significant inflow last week puts the ETFs above more established ETFs in the United States.

The 10 bitcoin ETFs netted +$2.3b last week. For context, that is more than any other ETF (out of 3,400) took in. $IBIT alone was #2. This brings total net to +$5b, which is more than BlackRock as a whole has taken in. Again, this is all net GBTC bleed. Throw that out and the… https://t.co/PlxnfQ7ETf pic.twitter.com/04LTixd3Zt

— Eric Balchunas (@EricBalchunas) February 17, 2024

Notably, most of this inflow went into BlackRock’s iShares Bitcoin Trust (IBIT), which has outperformed the nine other Bitcoin ETFs and ETFs of other asset classes. IBIT accumulated $1.673 billion in net inflows throughout the week, making it the third-largest inflow among any of the 3,500 plus exchange-traded funds.

At the close of last week’s trading session, BlackRock’s IBIT has received a $5.2 billion net inflow since its launch. Notably, this amounts to 50% of the investment company’s net inflow of $10.4 billion from its 417 ETFs since the beginning of the year.

It’s important to note that these staggering inflow numbers have come amidst an ongoing outflow from the Grayscale Bitcoin Trust ETF (GBTC). While outflows from the ETFs have slowed down compared to recent weeks, the GBTC witnessed $624 million in outflows during the week. “Again, this is all net GBTC bleed,” Balchunas noted.

BTC Bullish Price Momentum Set To Continue

Bitcoin’s price has skyrocketed over 33% in the past 30 days, recently topping $52,000 per coin for the first time since 2021. Current price action shows Bitcoin has somehow stabilized around this price point, with the crypto trading between $52,700 and $50,700 in the past five days. At the time of writing, Bitcoin is trading at $52,307.

However, the fear of missing out on further gains is driving many new investors to Bitcoin ETFs. According to an analyst, inflows into these ETFs are on track to reach $150 billion by the end of 2025. With a new all-time high now looking plausible, Bitcoin is set to continue on its price gain as spot ETF trading commences throughout the week.

BTC price continues to rise | Source: BTCUSD on Tradingview.com

Featured image from Business Today, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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