Key Points
Since their public launch on January 11, nine Bitcoin exchange-traded funds (ETFs) have gathered 300,000 Bitcoin (BTC), equivalent to $17 billion.
These ETFs have seen a net inflow exceeding $6 billion in less than two months.
The BTC holdings of these nine ETFs are approximately 1.5% of Bitcoin’s total supply, which is 21 million BTC.
As demand increases and supply remains limited, BTC’s price reached a new yearly high of over $57,000.
Bitcoin is now only 20% below its all-time high of nearly $69,000, and its market cap has surpassed $1.1 trillion.
Spot Bitcoin ETFs Maintain Bullish Momentum
Spot Bitcoin ETFs have sustained their bullish momentum, with over half a billion dollars in net inflow on Monday.
These ETFs also witnessed their highest trading volume day, with $2.4 billion in trading volume, surpassing the previous record of $2.2 billion set on their first trading day.
BlackRock’s IBIT led the volume charts with $1.29 billion, followed by Fidelity’s FBTC with $576 million.
Despite reaching 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 heavy selling of GBTC shares by FTX and other firms.
By the end of January, GBTC had seen withdrawals of $5.64 billion, but these outflows have decreased in February, totaling $2 billion so far.
Since its conversion, a total of $7.6 billion has been removed from GBTC.
The persistent net inflows, coupled with a decline in GBTC outflows, suggest a strong market demand for spot Bitcoin ETF products.
This could create additional market demand amid a shrinking Bitcoin supply, with the Bitcoin halving less than two months away.
Currently, miners add a total of 900 new BTC to the existing supply each day.
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 decrease further while the demand continues to grow.
This is seen as a highly bullish scenario for the BTC price.
