Bitcoin ETFs Attract Record Inflows as Price Hits New High
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Bitcoin ETFs in the U.S. witnessed a significant increase in inflows on Tuesday, reaching a new high of $648.4 million, coinciding with Bitcoin’s surge to a record high of over $69,200.
The surge in inflows was primarily driven by BlackRock’s IBIT, the largest spot bitcoin ETF, which attracted a staggering $788.3 million in a single day. This amount marked a 30% increase from its previous record of $603.9 million set on February 29 and exceeded the total net inflows for all other spot bitcoin ETFs combined on Monday.
Bitcoin ETF Flow – 5 March 2024
All data in. $648m total net inflow for the day. Largest inflows since day 1. Blackrock with a record +$788.3 million day. pic.twitter.com/zOJ5Y5XsEx
— BitMEX Research (@BitMEXResearch) March 6, 2024
Currently, IBIT boasts around $11.5 billion in assets under management and holds nearly 174,000 bitcoins, according to The Block’s data dashboard. The fund features a low expense ratio of 0.95% and tracks Bitcoin’s performance using the CME CF Bitcoin Reference Rate.
Other spot bitcoin ETFs also experienced positive inflows on Tuesday, with Fidelity’s FBTC being the second-best performer, attracting $125.6 million in inflows. Ark Invest 21 Shares followed with $63.7 million.
In contrast, Invesco’s BTCO and Grayscale’s converted GBTC fund experienced outflows. Grayscale’s GBTC, once the dominant Bitcoin fund, saw $332.5 million in outflows on Tuesday, totaling $9.6 billion since January 11. The fund’s high fee of 2% and trading at a discount to its net asset value have made it less appealing to investors.
$GBTC has seen almost $10b in outflows yet has the same amount of assets it did on launch day. Seems like magic, but it's the bull market subsidy and same physics keeping outflow-ridden active equity mutual funds with massive assets still (albeit mirage-y since customers have… https://t.co/zPiACOvNOQ
— Eric Balchunas (@EricBalchunas) March 5, 2024
Bitcoin ETFs Attract $8.5 Billion+ Inflows Since Launch
Since their launch on January 11, spot bitcoin ETFs have garnered over $8.5 billion in net inflows and currently manage approximately $50 billion in assets. These ETFs provide investors with a convenient and cost-effective way to gain exposure to Bitcoin without directly owning or storing the cryptocurrency.
The increased interest in bitcoin ETFs has also driven up trading volumes, which hit a record of $9.75 billion on Tuesday, surpassing the previous record of $7.64 billion on February 28. IBIT led the volume with $3.76 billion, followed by GBTC with $2.81 billion and FBTC with $2.05 billion.
The growing inflows and trading volumes of bitcoin ETFs indicate a rising interest in and adoption of bitcoin as an alternative asset class and a hedge against inflation. With Bitcoin’s value surging over 200% in the past year, it has outperformed most traditional assets.
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