Bitcoin ETFs record third largest inflow day as BTC price rises above $46,000

On Feb. 8, spot Bitcoin ETFs experienced their third-largest influx, totaling $403 million. The large inflows came despite over $100 million in GBTC outflows.

The total inflow into spot Bitcoin (BTC) exchange-traded funds (ETFs) has already exceeded $2.1 billion since their launch on Jan. 11, indicating a strong demand for BTC in the market. The third-largest inflow day for spot BTC ETFs came on the day BTC price crossed $46,000 to record a new multi-week high and just $2,000 short of new yearly highs.

BlackRock leads the ETF flow chart with an inflow of $204 million, followed by Fidelity with $128 million; ArkInvests BTC ETF recorded the third-largest inflow with $86 million, followed by Bitwise with $60 million. The other seven ETFs combined saw $27 million in inflows, with GBTC registering another $102 million in outflows.

BlackRock’s IBIT ETF also became the first ETF to trade more than Grayscale’s $GBTC daily. However, the total trading volume of all 11 BTC ETFs fell below $1 billion for the first time since launch.

Related: Alameda Research drops suit against Grayscale as GBTC sees outflows

Bloomberg senior analyst Eric Balchunas pointed out that BlackRock’s overtaking Grayscale in terms of trading volume is a big feat, considering it takes about 5-10 years for a new fund to overtake the category’s “liquidity king.”

Normally it takes 5-10yrs for a newborn to get even close to toppling a category’s liquidity king(s). $IBIT did it in under a month- trading more than both $GBTC and $BITO today. They’ll all go back and forth for a bit each day but over time the gap will grow. https://t.co/mml4KpFiPy

— Eric Balchunas (@EricBalchunas) February 8, 2024

Market pundits view the positive flow into Bitcoin ETFs as a sign of appetite and growing demand from investors. The net flow into ETFs means around $403 million, or 8698.44 BTC were taken off the market into the cold storage of the spot Bitcoin ETFs.

Spot Bitcoin ETFs gained SEC approval for listing on Jan. 10 and became available for trading the next day. Since their launch, spot BTC ETFs have seen record trading volume, with over a billion dollars being traded on a daily basis, indicating a strong investor interest.

With the Bitcoin halving coming in fewer than 70 days, the market supply of BTC would be cut in half from its current 6.25 BTC per block to 3.125 BTC. Amid the growing demand from institutional investors, the demining supply could help BTC break into new price discovery mode in the coming bull market.

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