Setting New Records
On March 5, the BlackRock iShares Bitcoin Trust (IBIT) ETF achieved a significant milestone, recording its highest daily inflows of $788 million, surpassing its previous all-time high of $612.1 million on Feb. 28. This surge in inflows coincided with Bitcoin reaching a new all-time high of $69,324 on the same day, highlighting growing investor interest in the cryptocurrency market.
ETF Market Dynamics
Among the 10 approved Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) and the Invesco Galaxy Bitcoin ETF were the only two to experience net outflows, with $332.5 million and $14.2 million, respectively, on March 5. In contrast, IBIT led the day's inflows, followed by the Fidelity Wise Origin Bitcoin Fund ($125.6 million) and other prominent ETFs.
Market Impact and Investor Sentiment
The influx of investments into Bitcoin ETFs reflects a broader trend of growing institutional interest in Bitcoin and cryptocurrencies. Despite some ETFs experiencing outflows, the overall market remains bullish, with total net inflows into the Bitcoin ETF ecosystem reaching $8.5 billion to date. IBIT and the Franklin Bitcoin ETF (FBTC) have consistently attracted significant inflows and have not reported any net outflows since their inception.
MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are bananas numbers for ETfs under 2mo old. $IBIT, $FBTC, $BITB, $ARKB all w record days. pic.twitter.com/rIdbhoYifV
— Eric Balchunas (@EricBalchunas) March 5, 2024
Looking Ahead
As the Bitcoin bull run gathers pace, the Bitcoin ETF market is expected to continue thriving, with the combined trading volume of U.S.-based spot Bitcoin ETFs already exceeding $10 billion. These ETFs, some of which are less than two months old, are attracting substantial investments, indicating a positive sentiment and strong confidence in the future of Bitcoin and the cryptocurrency market.
