Bitcoin Spot ETFs attract record investments of US$2.2 billion in the market in the last week

Over the past week, the cryptocurrency market has witnessed an impressive milestone: Bitcoin ETFs have attracted an inflow of $2.2 billion, as reported by BitMEX Research.

This phenomenon not only increased confidence in cryptocurrency as a viable investment option but also sets a new record for the volume of money funneled into any exchange-traded investment product in the United States during this particular interval.

From February 12-16, Bitcoin spot ETFs saw more than $2.2 billion flow into their coffers, with BlackRock’s IBIT leading the race, absorbing a staggering $1.6 billion. This contribution raised its total net flows to the US$5.2 billion mark. Other products such as Fidelity’s FBTC and Ark Invest’s BTCO were also not left behind, registering significant inflows and demonstrating investors’ interest in diversifying their portfolios with digital assets.

Here is the image again, if you can’t see the original https://t.co/TphjGxSaOx pic.twitter.com/03cNf7eeRH

— BitMEX Research (@BitMEXResearch) February 17, 2024

Meanwhile, Grayscale’s GBTC faced a different scenario, with a net outflow of around US$620 million in the same week, highlighting a fluctuation in investor preferences between the different cryptocurrency investment vehicles available on the market.

This massive flow of capital into Bitcoin ETFs had a direct impact on the market, driving the price of the cryptocurrency past the $52,000 barrier on February 15, a peak not seen in more than two years. Such a move suggests not only an increase in investor interest but also greater liquidity and trading activity among Bitcoin ETFs.

Complementing this narrative, Santiment reported a significant jump in the trading volume of these ETFs since the beginning of February. The main spot ETFs recorded daily trading volumes that exceeded US$1.8 billion in the first half of the month, reflecting the growing acceptance of digital assets in traditional investment portfolios.

As the cryptocurrency market evolves, the substantial inflow of investments and increased trading volume in Bitcoin ETFs highlights broader integration and acceptance of these digital assets, marking a significant moment of market transition and maturation.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.