Bitcoin ETFs see 14 consecutive days of net inflows as crypto market cap crosses $2t

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Bitcoin ETFs continued to experience hundreds of millions in demand a day after setting a historical high for daily net inflows.

According to SoSoValue, spot Bitcoin ETFs marked a 14th consecutive day of net inflows with roughly $339 million on Feb. 14, only $300 million less than the day before. BlackRock claimed the largest inflow of the lot, garnering $224 million, while Fidelity recorded $118 million in net inflows.

BlackRock and Fidelity are by far the largest new Bitcoin (BTC) ETF issuers, with $4.8 billion and $3.5 billion, in cumulative inflows since trading was authorized by the U.S. SEC. The two giants command nearly $10 billion in AUM, accounting for over 200,000 BTC acquired by nine issuers for Bitcoin ETFs.

Experts like crypto lawyer John E. Deaton tied Bitcoin’s price rally to demand for spot BTC ETFs and massive Bitcoin acquisitions by issuers.

Yesterday Pomp was on @cvpayne’s Making Money show and discussed how the day before, inflows were at 12x the daily supply. The next day (yesterday) inflows reached 14x. Common sense and basic supply & demand economics make it pretty easy to understand what’s happening. At some… https://t.co/3XmlVtr1F9

— John E Deaton (@JohnEDeaton1) February 14, 2024

While BlackRock and Fidelity outclassed competitors, Grayscale’s GBTC ETF saw another net outflow day at $131 million. GBTC has shed over $5 billion since it began trading as an ETF on Jan. 11. The fund remains the largest, holding over $23 billion in AUM.

Following rulings from a U.S. bankruptcy court, Grayscale may offload another $1.6 billion from its GBTC ETF. Judge Sean Lane approved bankrupt crypto lender Genesis to sell 35 million Grayscale shares.

Bitcoin ETF interest boosts crypto market cap

Institutional demand for Bitcoin ETFs has seemingly galvanized broad interest in cryptocurrencies. Bitcoin’s price uptick has coincided with an uptrend in the total cryptocurrency market capitalization.

The crypto market was worth over $2 trillion as of Feb. 15 per CoinGecko, with BTC accounting for over half of this figure since it reclaimed a trillion-dollar valuation. TradingView data confirmed BTC as the dominant crypto asset, boasting a 53% market share.