Bitcoin ETF Inflows Skyrocket: Last 4 Days Outpace First 20 (Analysis)

Bitcoin ETF inflows have surged over the last four days to reach over $2.2 billion, more than the entire first four weeks of trading.

Notably, the bullishness around the inflows has been viewed by market participants as a major factor driving Bitcoin’s rally, which saw its price pass the $52,000 mark.

Bitcoin ETFs See Record-Breaking Daily Net Inflows

According to data from Apollo, a Bitcoin tracking platform, ten spot BTC Exchange-Traded Funds (ETFs) have experienced a surge in interest, amassing 43,300 Bitcoin in inflows within the last four days. It is quite impressive, considering it took 20 days for these funds to amass 42,000 Bitcoin in inflows after approval.

We’re witnessing total acceleration of #BTC ETF inflows.

First 20 days of Trading ~ 42K BTC Inflows

Last 4 Days of trading ~ 43k BTC Inflows 🤯

🚀🚀🚀 pic.twitter.com/IqvX7wI13b

— Thomas | heyapollo.com (@thomas_fahrer) February 15, 2024

On February 14, the ETFs experienced a significant surge in daily net inflows, reaching a record high of $631 million. Most of these inflows, 82% amounting to $518 million, were attributed to BlackRock’s iShares. During this period, the BlackRock ETF also surpassed $5 billion in assets under management.

Four Bitcoin ETFs, excluding Grayscale, have successfully surpassed $1 billion in assets under management (AUM). BlackRock’s iShares Bitcoin fund, Fidelity’s Wise Origin, and Ark21 Shares fund took the lead, with Bitwise’s Bitcoin ETF BITB being the latest to achieve this milestone on February 14.

Meanwhile, Valkyrie, VanEck, Invesco, and Franklin Templeton are yet to reach the $500 million AUM mark. WisdomTree’s Bitcoin Trust is also facing challenges in attracting significant inflows and currently ranks last among the new ETFs, accumulating only $23 million in AUM.

The surge in inflows coincides with the slowdown of Grayscale outflows. Initially, the ETF witnessed substantial outflows as investors shifted to other ETFs. While the net outflows currently stand at around $7.2 billion, Grayscale still holds over 463,475 BTC for its GBTC ETF, compared to the over 242,090 BTC accumulated by other issuers in less than three months.

Bitcoin Hits $1 Trillion Market Cap

The heightened demand for spot Bitcoin ETFs has had a major positive impact on the BTC market. The surge in interest has seen Bitcoin surpass the $52,000 mark for the first time since December 2021 and hit $1 trillion in market capitalization.

Meanwhile, Coinglass data shows that over $73.82 million in short positions have been liquidated in the last 24 hours.

According to BTC proponent Scott Melker, the simple reason why Bitcoin is going up is that the number of buyers is more than sellers, as ETF inflows are massive.

Currently, Bitcoin is trading at $51,805, up 4% over the last 24 hours and 17% over the last week.