Bitcoin ETF Inflows Hit Record $1.05 Billion in a Day

On March 12, net inflows into spot exchange-traded funds (ETFs) based on the leading cryptocurrency reached $1.05 billion. This figure surpasses the previous February record of $673 million by 56%.

According to SoSoValue, BlackRock continues to lead the ETF race, with IBIT volume increasing by $848 million in a day. The company’s total fund value has reached $15.42 billion. Over two months, the asset manager has accumulated more than 200,000 BTC.

Grayscale’s GBTC is still experiencing outflows, with investors withdrawing about $78 million in a day.

Trading volume remains consistently high, reaching $8.67 billion on March 12. The record was set on March 5 at $10.4 billion. 

The total value since the inception of these instruments has reached $113.5 billion.

Since their launch in January, spot exchange-traded funds on digital gold have gained momentum, outpacing their futures counterparts. According to The Block Dashboard, the share of futures Bitcoin ETFs relative to spot ones has shrunk to 10%. 

David Lawant, head of research at FalconX, stated that Bitcoin’s price is setting new records as more money flows into spot Bitcoin ETFs.

“If about a week ago, inflows into spot ETFs were determining the quotes [of the first cryptocurrency], lately, I’ve had the impression that prices, at least to some extent, are also beginning to drive inflows,” he noted. 

At the time of writing, Bitcoin is trading at $73,455, setting a new all-time high daily. The asset’s market capitalization has reached $1.44 billion with a trading volume of $69.5 billion.

“Absurd” Success

Bloomberg analyst Eric Balchunas posted on X about the conclusion of two months of trading, which “feels like six.”

First two months officially in the books (it’s felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I’d call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ

— Eric Balchunas (@EricBalchunas) March 11, 2024

“The ten Bitcoin ETFs now manage over $55 billion in assets, with double that in volume at $110 billion. If these were the numbers at the end of the year, I’d call them a success. To achieve this in eight weeks is simply absurd,” the expert marveled. 

Balchunas added that funds from BlackRock and Fidelity rank third and fourth, respectively, in annual inflows among all ETFs, standing alongside some of the largest ETFs in the world. 

Back in February, Bitcoin instruments surpassed silver-based exchange-traded funds in assets under management.

In a conversation with The Block, GSR analyst Brian Rudick agreed that ETFs based on the first cryptocurrency exceeded “even the most optimistic expectations.” 

“[The funds] have become almost the sole driver pushing Bitcoin’s price from $25,000 to $70,000. It was the most successful ETF launch in history by many measures, and most importantly, they have legitimized and established cryptocurrencies as an asset class,” he added.

According to Nate Geraci, president of investment advisor The ETF Store, exchange-traded crypto funds operate “flawlessly,” trading with narrow spreads and closely tracking Bitcoin’s spot price. Meanwhile, minimal fees are a “clear win for investors.”

“The structure of the Bitcoin market seems to have changed forever: the 3-4 PM New York close is now the most liquid part of the day,” noted VanEck’s head of research, Matthew Sigel. 

He explained that large volumes occur during this time as the benchmarks used by market makers and ETF investors for calculations are assessed at this hour.

CEO of CryptoQuant Ki Young Ju concluded that if the current pace of capital inflows into spot Bitcoin funds continues, the market will face a crisis of available coins for purchase within six months.