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Bitcoin ETF daily inflows breaks $1B

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The US recently gave the green light to spot Bitcoin (BTC) exchange-traded funds (ETFs), which witnessed another day of record-breaking inflows on March 12.

According to data from BitMEX Research, net inflows for spot bitcoin ETFs crossed the $1 billion mark. Blackrock’s IBIT product also experienced significant activity, with a record inflow of $849 million after reporting over 200,000 BTC assets under management earlier in the week.

On that day, the inflow of Bitcoin set a new record at 14,706 BTC, with a value of about $72,895.52 per Bitcoin. Since January 11, 2024, total net inflows into Bitcoin ETFs have reached $11.1 billion.

Recent data reveals that spot Bitcoin ETFs now contribute to more than 90% of the daily trading volume among ETFs providing exposure to Bitcoin. This signifies a notable increase in market share dominance. In contrast, Bitcoin futures ETFs saw their market share dwindle to just 10%.

Positive Reception for Investment Contracts

The performance of spot ETFs focusing on Bitcoin has been highly positive, meeting and surpassing benchmarks across various indicators. Brian Rudick, a Research Analyst at GSR, mentioned in an interview with The Block, “The success of U.S. spot Bitcoin ETFs has far surpassed even the most optimistic forecasts. Accumulating over $10 billion in inflows within two months nearly matches what many expected for their first year. Potential drivers for further inflows include enhanced sales efforts by issuers, inclusion in wealth manager portfolios, and the normalization of outflows from GBTC.”

These developments come in the wake of the US Securities and Exchange Commission (SEC) delaying decisions on approving Bitcoin ETF options for trading. The decision has been postponed for another 45 days (the maximum being 90 days as per the law) with the final decision now slated for April 24.

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