Bitcoin ETFs Soar as Investors Flood Market, BTC Hits $51K

Sahana Kiran
Bitcoin etf
Source – Unsplash

In a noteworthy development, spot Bitcoin exchange-traded funds (ETFs) have witnessed an unprecedented surge in inflows, indicating renewed interest from investors in the cryptocurrency market. On Feb. 13, the combined inflows across all nine spot Bitcoin ETFs surged to a remarkable $631 million, potentially marking the largest single-day influx since the launch of Bitcoin ETFs just last month.

BlackRock’s iShares Bitcoin ETF (IBIT) emerged as the leader, with an impressive inflow of $493 million. BlackRock has consistently outpaced its rivals by a significant margin in this aspect. Following closely behind, Fidelity recorded the second-highest inflows on Feb.13, totaling $163 million.

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Slowdown in GBTC Outflows

Conversely, outflows from the Grayscale Bitcoin Trust (GBTC) have shown signs of deceleration, remaining below $100 million over the past three days this week. Collectively, net inflows into BTC ETFs now stand at a commendable $3.7 billion. It is worth noting that asset management giant BlackRock has experienced $4.6 billion in net inflows, while GBTC has witnessed $6.5 billion in net outflows.

Feb. 12 marked a significant milestone as spot Bitcoin ETFs acquired nearly ten times more Bitcoin than what miners generated. Initial data indicates that these ETFs received at least $493.4 million, equivalent to approximately 10,280 BTC. In contrast, Bitcoin miners produced about 1,059 BTC valued at roughly $51 million on the same day, representing a mere 10% of the amount accumulated by spot ETFs.

Bitcoin Price Movement

Amidst these developments, BTC is currently trading at a high of $51,211.99, reflecting a 2.24% increase over the last 24 hours. The upward momentum of the flagship cryptocurrency suggests a potential rally towards the coveted $60,000 mark, driven by institutional investments flowing into spot Bitcoin ETFs.

Also Read: Bitcoin (BTC) Could Drop To $30,000 Despite Recent Surge, Here’s Why

The surge in inflows into spot BTC ETFs underscores the growing confidence of institutional investors in the cryptocurrency market. As these investment instruments continue to attract substantial capital, BTC’s price trajectory remains bullish, with investors hopeful for a breakthrough beyond the $60,000 threshold.