Spot Bitcoin ETFs Witness $2.3B Inflows, Fueling BTC’s Rise to $52,000

Bitcoin ETFs experienced a significant increase in investment, with approximately $2.3 billion entering last week - almost double the previous week's inflow of $1.2 billion.

Fineqia reports that last week, Bitcoin ETF inflows doubled to $2.3 billion, contributing to BTC’s surge to $52,000.

By Ruholamin Haqshanas | Last updated: February 19, 2024 11:56 EST | Estimated reading time: 3 min

🔥🔥🔥 Good news for Bitcoin enthusiasts! Spot Bitcoin (BTC) ETFs have experienced a massive influx of approximately $2.3 billion in the past week, almost doubling the previous week’s inflow of $1.2 billion. It’s like a tidal wave of money crashing into the crypto market 🌊💰.

These impressive inflows account for nearly half of the total net inflow since the inception of BTC ETFs, which currently stands at approximately $5 billion. Not too shabby, right? Well, according to Matteo Greco, a research analyst at digital asset investment firm Fineqia International, this surge in demand for BTC ETFs has played a significant role in Bitcoin’s recent price surge. Last week, Bitcoin gained around 8% and closed at approximately $52,150. Talk about making it rain 💸💸.

Spot Bitcoin ETFs Steady Inflow

According to a note shared with Blocking.net.com, Greco revealed that the positive net inflows into BTC ETFs have remained consistent for a staggering 16 consecutive trading days since January 26. It’s like a well-oiled money-making machine, churning out profits day after day 💪💵.

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However, it’s not all sunshine and rainbows. Last week saw a slight increase in outflows from the Grayscale Bitcoin ETF (GBTC), with investors cashing in approximately $625 million. Can’t blame them for wanting to take some profits after such a significant surge in Bitcoin’s price 📈💰.

Among the ETFs launched on January 11, the Blackrock Bitcoin ETF (IBIT) takes the lead with over $5 billion in assets under management (AUM), totaling around $6.2 billion. Right on its tail is the Fidelity BTC ETF (FBTC) with approximately $4.5 billion AUM, followed by the 21Shares & ARK Bitcoin ETF (ARKB) securing the third position with roughly $1.5 billion AUM. Oh, and let’s not forget about the Bitwise Bitcoin ETF (BITB), which recently crossed the $1 billion AUM milestone, reaching around $1.2 billion AUM. These numbers are mind-blowing! 💥💥💥

Trading Volume Surges

The trading volume of BTC ETFs has been soaring through the roof as well. Last week alone, the cumulative trading volume reached approximately $9.6 billion, with a daily average volume exceeding $1.9 billion. Since January 11, the total trading volume has reached a staggering $45.3 billion, with an average daily volume of approximately $1.7 billion. It’s like the crypto market is on steroids, with traders and investors flocking to get their share of the action 🚀📈.

But before we get too carried away, let’s take a look at the bigger picture. The upcoming Federal Open Market Committee (FOMC) meeting, scheduled 30 days from now, is expected to result in no change in rates, with a 90% probability. However, there’s still anticipation of a 25bps cut between the end of Q2 and the beginning of Q3 this year. This expectation has led to increased risk exposure among market participants, making them more willing to invest in assets like BTC, cryptocurrencies, and stocks. No wonder the S&P 500 recently hit an all-time high 📈🎉.

This positive market sentiment driven by the expectation of a less restrictive monetary policy from the FED is contributing to the robust momentum of risk assets such as BTC, cryptocurrencies, and stocks. Greco sums it up perfectly, stating, “This expectation fuels the anticipation for a less restrictive monetary policy from the FED, increasing risk exposure that market participants are willing to undertake.” Buckle up, folks, as the ride is just getting started! 🎢💥

Q&A: What You Need to Know

Q: How much money has flowed into BTC ETFs since their inception?
A: BTC ETFs have accumulated a total net inflow of approximately $5 billion, with $2.3 billion pouring in last week alone.

Q: Which BTC ETF has the highest assets under management (AUM)?
A: The Blackrock Bitcoin ETF (IBIT) leads the pack with over $5 billion AUM, totaling around $6.2 billion.

Q: Why did the Grayscale Bitcoin ETF (GBTC) see outflows?
A: After Bitcoin’s significant price surge, investors took the opportunity to cash in their profits, resulting in around $625 million in outflows from GBTC.

Looking Ahead

Based on the incredible demand for BTC ETFs and the positive market sentiment surrounding cryptocurrencies and stocks, it’s safe to say that we’re in for an exciting ride in the coming months. The crypto market is showing no signs of slowing down, and investors are eager to get a piece of the action. So, buckle up, hold on tight, and get ready for the wild rollercoaster ride that is Bitcoin and the world of digital assets! 🚀🎢

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Reference list:

1. Bitcoin ETF Inflows Doubled to $2.3B Last Week, Fueling BTC’s Rise to $52,000: Fineqia
2. Gold ETFs have faced significant outflows
3. Data from Farside
4. Follow Us on Google News

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That wraps up our analysis and commentary on the recent inflows into BTC ETFs and Bitcoin’s price surge. We hope you found this information valuable and entertaining. If you have any questions or thoughts, please feel free to share them in the comments below. And don’t forget to share this article with your friends and followers on social media. Let’s spread the knowledge and excitement about the world of digital assets! 🌟💻🚀

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