Bitcoin spot exchange-traded funds have only been online in the US for two months, but their performance is still not so good has far eclipsed all other asset classes. These ETFs recently reached a new milestone, generating over $2.2 billion in inflows last week alone, breaking the previous weekly record set to the first week of trade. This is a particularly notable development because, as senior Bloomberg analyst Eric Balchunas noted, these inflows skyrocketed beyond the 3,400-plus ETFs available in the US, such as SPLG US and SPY US.
Bitcoin ETF Inflows Surge Amid Competition
Bitcoin ETFs have fully captured the attention of institutional investors, with trading volume indicating their attractive nature. Trading volume statistics show that these 10 ETFS have seen a lot of activity since their launch, raising over $2.3 billion last week alone, bringing total inflows to $4.926 billion since they went live. As Eric Balchunas has noted, the significant inflows over the past week put the ETFs above the more established ETFs in the United States.
The 10 bitcoin ETFs raised +$2.3 billion last week. For context, that’s more than any other ETF (out of 3,400) has taken in. $IBIT only was number 2. This brings the total net amount to +$5 billion, which is more than BlackRock raised as a whole. Again, these are all net GBTC bleeds. Throw that away and the… https://t.co/PlxnfQ7ETf pic.twitter.com/04LTixd3Zt
— Eric Balchunas (@EricBalchunas) February 17, 2024
Notably, most of these inflows went to BlackRock’s iShares Bitcoin Trust (IBIT), which outperformed the nine other Bitcoin ETFs and ETFs from other asset classes. IBIT collected $1.673 billion in net inflows for the week, making it the third-largest inflows of all more than 3,500 exchange-traded funds.
At the end of last week’s trading session, BlackRock’s IBIT has received net inflows of $5.2 billion since launch. Notably, this amounts to 50% of the mutual fund company’s $10.4 billion net inflows from its 417 ETFs since the beginning of the year.
It’s important to note that these staggering inflow numbers come amid continued outflows from the Grayscale Bitcoin Trust ETF (GBTC). While the outflow from the ETFs has decreased compared to the past few weeksThe GBTC witnessed an outflow of $624 million this week. “Again, this is all net GBTC bleed,” Balchunas noted.
BTC’s bullish price momentum will continue
Bitcoin’s price has skyrocketed by more than 33% in the past 30 days and recently surpassed $52,000 per coin for the first time since 2021. The current price action shows that Bitcoin stabilized somehow around this price, with the crypto trading between $52,700 and $50,700 over 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 analystinflows into these ETFs are on track to reach $150 billion by the end of 2025. a new all-time record Now that things are looking plausible, Bitcoin will continue its price rise as spot ETF trading begins throughout the week.
BTC price continues to rise | Source: BTCUSD on Tradingview.com
Featured image from Business Today, chart from Tradingview.com
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