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The influx of investments into Bitcoin ETFs, culminating in a total of $563 million on March 4, signifies a robust institutional endorsement of cryptocurrency.
Fidelity’s Bitcoin ETF (FBTC) has set a new record by attracting an astounding $405 million in a single day.
Surging Interest amidst Market Optimism
As Bitcoin edges closer to its all-time high, the surge in ETF inflows is a clear indicator of the positive sentiment engulfing the market. FBTC witnessed the most substantial net inflow day since its inception, bringing its total net inflow to an impressive $5.2 billion and holding 107,905 Bitcoin.
A Competitive Landscape
The entire ETF sector is experiencing a wave of activity, reflecting a broader market trend of significant institutional interest. On the same note, BlackRock’s IBIT also saw a notable increase, with an additional inflow of $420 million, raising their total net flow to a staggering $8.4 billion and holding 170,838 Bitcoin. Bitwise’s BITB wasn’t left behind, reporting a significant net inflow of approximately $91 million, marking their third-highest net inflow day.
Contrastingly, GBTC faced a considerable day of outflows totaling $368 million. However, it’s worth noting that the outflows from the last three trading days have started to diminish, suggesting a potential shift in investor sentiment or strategic reallocations within the market. But GBTC’s total outflows remain significant at $9.3 billion, according to BitMEX. Other ETF issuers that experienced outflows included Invesco’s BTCO, which saw a $26 million outflow; VanEck’s HODL, which faced a $6 million outflow; and WisdomTree’s BTCW, which had a $3.2 million outflow, indicating consecutive losses.
[1/4] Bitcoin ETF Flow – 04 March 2024
All data in. Very strong day with +$562m net flow. Fidelity very strong with a record day
Not the best day for diversity, with smaller players BTCO, HODL & BTCW all having outflows pic.twitter.com/drCrg6EzsN
— BitMEX Research (@BitMEXResearch) March 5, 2024
A Clear Sign of Institutional Confidence
The influx of investments into Bitcoin ETFs, culminating in a total of $563 million on March 4, equivalent to roughly 8,338 Bitcoins, signifies a robust institutional endorsement of cryptocurrency. With Bitcoin ETFs accumulating a total of $7.9 billion, equivalent to 152,630 BTC, the landscape is set for further growth and innovation.
Since their introduction two months ago, spot Bitcoin ETFs have experienced net inflows amounting to $7.5 billion in BTC, even amidst outflows exceeding $9 billion. BlackRock’s IBIT has swiftly amassed $10 billion in assets under management, a milestone that took gold ETFs almost two years to achieve.
