The nine spot Bitcoin exchange-traded funds (ETFs) that started trading publicly on Jan. 11 have amassed 300,000 Bitcoin (BTC) worth $17 billion in less than two months of their public debut. The net inflow for spot Bitcoin ETFs surpassed $6 billion.
The BTC holdings of nine spot Bitcoin ETFs are nearly 1.5% of Bitcoin’s total supply of 21 million BTC. Amid a growing demand and limited supply, BTC price touched a new yearly high of over $57,000. Bitcoin is now only 20% down from its all-time high of nearly $69,000, and its market cap has breached $1.1 trillion.
Spot Bitcoin ETFs have continued their bullish momentum with more than half a billion dollars in net inflow on Monday. The nine-spot Bitcoin ETFs also recorded their highest trading volume day with $2.4 billion in trading volume, beating the prior record of $2.2 billion set on the first trading day, Jan. 11
BlackRock’s IBIT topped the volume charts with $1.29 billion, followed by Fidelity’s FBTC in second at $576 million. While inflows into spot Bitcoin ETFs continue to touch new highs, Grayscale’s GBTC recorded its lowest outflow with just $22 million, marking its third consecutive trading day of slowing net outflows,
Grayscale’s Bitcoin ETF is the only fund that has seen continuous net outflows since its launch due to the heavy selling of GBTC shares by FTX and other firms. GBTC saw withdrawals of $5.64 billion by the end of January. However, these outflows have decreased in February, totaling $2 billion thus far. A total of $7.6 billion has been removed from GBTC since its conversion.
The continuous net inflows, with a decline in GBTC outflows, indicate a heavy market demand for the spot Bitcoin ETF products. This could put additional market demand amid a diminishing Bitcoin supply, with the Bitcoin halving less than two months away.
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Currently, a total of 900 new BTC is added to the existing supply by miners. However, spot Bitcoin ETFs are seeing net inflows of nearly 8,000-9,000 BTC on each trading day. With Bitcoin halving, the supply will diminish further while the demand grows. This is considered a highly bullish scenario for the BTC price.
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