Capital Inflows into Bitcoin ETF Skyrocketed

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In a major move for the cryptocurrency market, institutional investors have poured up to $700 million into the US Spot Bitcoin ETF, with the first investments coming from leading representatives such as BlackRock and Fidelity , overcoming significant competition from Grayscale. This massive capital inflow not only highlights growing institutional interest in digital assets but is also a testament to their growing adoption within the mainstream financial system.

Bitcoin ETF records inflow of 700 million USD

On March 5, 2024, the Spot Bitcoin ETF in the United States marked an important milestone, seeing an unprecedented increase in capital flows. According to provisional data from Farside UK, inflows into the Spot Bitcoin ETF reached approximately $662.5 million, marking one of the highest daily levels to date.

However, attention turned to BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC, with the two funds accumulating more than $900 million. In particular, BlackRock’s IBIT recorded an impressive inflow of $788.3 million, highlighting the growing confidence of institutional investors in Bitcoin as a viable asset. Additionally, Fidelity’s FBTC raised a significant sum of $125.6 million, adding strength to the institution’s support for digital assets.

In contrast, Grayscale’s Bitcoin Trust (GBTC) continues to see strong outflows, with March 5 seeing withdrawals of $332.5 million. Despite these fluctuations, overall sentiment towards the Bitcoin ETF remains optimistic, driven by positive market momentum and increased institutional participation.

Market dynamics and volatility of Bitcoin

Market volatility and Bitcoin ETF momentum are in sync with Bitcoin hitting a new all-time high, surpassing $69,000. Notably, market experts attribute this to the positive momentum in the Bitcoin ETF sector, coupled with predictions surrounding the upcoming Bitcoin Halving and global demand for the digital asset. numbers are increasing.

However, the excitement surrounding Bitcoin’s price surge was short-lived, as the cryptocurrency plummeted to as low as $59,000 after its peak on March 5. This drop is recent has generated heated discussions in the cryptocurrency market, while also reflecting the volatile nature of digital assets.

Meanwhile, according to Spot On Chain, Bitcoin’s incident suddenly became more serious due to the actions of an inactive “whale” who transferred 1,000 BTC, worth about 67.1 million USD, to Coinbase when the price was at 67,116 USD. This highlights the volatility and speculative nature of the cryptocurrency market, which is said to be aimed at making a profit.