Bitcoin ETF

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Grayscale Bitcoin Trust

United States-based spot Bitcoin exchange-traded funds (ETF) saw net inflows of $562 million on March 4, as the BTC price breached $68,000, with the cryptocurrency’s edging ever closer to its all-time high of about $69,000. This marked the third-largest day of inflows to spot Bitcoin ETFs since they started trading on Jan. 11.
The March 4 inflows came despite outflows from multiple smaller players and the Grayscale Bitcoin Trust (GBTC). GBTC saw $368 million in outflows on the day. BlackRock’s iShares Bitcoin Trust recorded the largest inflows of $420 million, followed by Fidelity’s Wise Origin Bitcoin Trust at $404 million. The net inflows into spot Bitcoin ETFs on the day were 10 times the amount of new BTC added to the supply through mining activities.
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 Bitcoin ETFs net inflows. Source: SoSo Value
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Spot Bitcoin ETF trading volume peaked at $5.5 billion in total on March 4, making it the second-highest volume day since the products launched. The high trading volume and institutional demand mean spot Bitcoin ETFs, exchange-traded products and trackers now handle around 1 million BTC — roughly 5.13% of the total BTC circulating supply. Of that 1 million BTC, nearly 83% is managed by U.S.-based spot and futures ETFs, according to a report published by K33 Research.
Related: <a href="https://cointelegraph.com/news/gold-etfs-bleed-this-year-as-bitcoin-etfs-hit-record-volumes">Gold ETFs bleed $2.4B so far in 2024 as Bitcoin ETFs hit record volumes</a>
In the two months since their launch, spot Bitcoin ETFs have seen net inflows of $7.5 billion worth of BTC despite over $9 billion in outflows. BlackRock’s IBIT has already <a href="https://cointelegraph.com/news/blackrock-bitcoin-etf-10-billion-aum-beating-first-gold-spdr"></a><a href="https://cointelegraph.com/news/blackrock-bitcoin-etf-10-billion-aum-beating-first-gold-spdr">reached $10 billion</a>&nbsp;in assets under management. In contrast,&nbsp;gold ETFs took nearly two years to reach that figure.
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 <img src="https://s3.cointelegraph.com/uploads/2024-03/126424e9-f8d2-4b8a-ba40-549a764c9f0a.jpg" alt="" title="">
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 Bitcoin and gold ETF flows comparison. Source: <a href="https://twitter.com/JeffKirdeikis/status/1764446976228417605" target="_blank" rel="noopener nofollow"></a><a href="https://twitter.com/JeffKirdeikis/status/1764446976228417605" target="_blank" rel="noopener nofollow">Jeff Kirdeikis&nbsp;on X</a>
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Bitcoin ETFs might see increased demand in the coming days, with BlackRock <a href="https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/1738078/000119312524057885/d718346d497.htm" target="_blank" rel="noopener nofollow">filing</a>&nbsp;to purchase BTC for its Strategic Income Opportunities Fund. With the Bitcoin halving scheduled for April, the daily supply of new BTC will be reduced by half despite a current market demand already exceeding new supply by 10x, which could act as a catalyst for a further BTC price increase.

Bitcoin ETF inflows hit $562M as BTC price eyes new ATH

Cointelegraph

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