Bitcoin Surges to $55,000 as ETF Capital Inflows Set Record

The daily trading volume of Bitcoin ETF Spot funds has reached a new record as Bitcoin approaches the $55,000 mark. On February 26, the combined trading volume of these ETFs amounted to $2.4 billion, surpassing the previous record of $2.2 billion set on the inaugural trading day, January 11. It is important to note that these figures exclude the trading volume of Bitcoin ETFs converted from Grayscale’s GBTC.

BlackRock’s IBIT dominated the trading landscape on February 26, securing the highest volume at $1.29 billion, marking a personal daily record of approximately 30%. Fidelity’s FBTC secured the second position with a trading volume of $576 million. Inflows from ARK 21Shares and Bitwise ETFs reached $276 million and $81 million, respectively.

Eric Balchunas mentioned that he is not “entirely certain” about the source of the newfound interest, but the notable increase in volume on the first trading day of the week is noteworthy.

Bloomberg ETF analyst James Seyffart highlighted that February 26 recorded the second-largest trading day at $3.2 billion, encompassing the capital flow from Grayscale’s Bitcoin ETF. Notably, during the trading day when IBIT surpassed the $1 billion milestone, Balchunas observed that IBIT ranked as the 11th largest ETF by volume among all funds. He remarked on the staggering figures for new entrants in the ETF space, particularly competing with one in ten counterparts, stating, “1 billion USD per day is a significant trading volume, sufficient for major institutions to consider.”

Meanwhile, on February 26, as Bitcoin surged to $54,900, marking its highest point in the last two years, it still fell short of the all-time high of $69,000 recorded on November 10, 2021.

According to BitMEX Research, although flow data has not been officially disclosed as of February 26, more than $583 million has poured into Bitcoin ETF Spot funds during the four-day trading week last week.

Bitcoin ETF Flow – 24 Feb 2024

All data now in, except perhaps for the Galaxy/Invesco product

Friday was a strong day, with +$232.3m of net inflow. Also, the outflow for GBTC was just $44m, lowest level since 11th Jan pic.twitter.com/1Q0OtjEJLt

— BitMEX Research (@BitMEXResearch) February 24, 2024

A net outflow of $35.7 million was recorded on February 21, marking the first day without an inflow since January 25. Cumulatively, capital inflows from the beginning of the year have surpassed $5.5 billion.

Among the notable fund movements, IBIT, FBTC, ARKB, and BITB experienced the largest capital inflows at $5.9 billion, $4 billion, $1.4 billion, and $1 billion, respectively. On the other hand, GBTC witnessed a capital outflow of $7.4 billion.