The nine new spot Bitcoin exchange-traded funds (ETFs) have amassed 300,000 Bitcoin worth $17 billion in less than two months since their public debut on Jan. 11, with net inflows surpassing $6 billion.
The Bitcoin (BTC) holdings of the nine spot ETFs account for almost 1.5% of Bitcoin’s total supply of 21 million BTC. Amid growing demand and limited supply, the BTC price touched a new yearly high of over $57,000 on Feb. 27. Bitcoin is now only 20% down from its all-time high of nearly $69,000, and its market cap has breached $1.1 trillion.
The spot Bitcoin ETFs continued their bullish momentum with more than half a billion dollars in net inflow on Monday, Feb. 26. The ETFs also recorded their highest trading volume day with $2.4 billion, beating the prior record of $2.2 billion set on the first trading day, Jan. 11.
BlackRock’s iShares Bitcoin Trust topped the volume charts with $1.29 billion, followed by Fidelity’s Wise Origin Bitcoin Fund in second at $576 million. While inflows into spot Bitcoin ETFs continue to hit new highs, Grayscale’s Bitcoin Trust (GBTC) recorded its lowest outflow day with just $22 million leaving the fund, marking its third consecutive trading day of slowing net outflows.
GBTC 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 investors. GBTC saw withdrawals of $5.64 billion by the end of January. However, outflows have decreased in February, totaling $2 billion so far. A total of $7.6 billion has exited the GBTC ETF since its conversion.
The continuous net inflows, with a decline in GBTC outflows, indicate a heavy market demand for spot Bitcoin ETFs. This could add 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 daily supply by miners. However, spot Bitcoin ETFs are seeing net inflows of nearly 8,000–9,000 BTC on each trading day, diminishing supply further as demand continues to grow, which is considered a bullish scenario for the price of BTC.
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