Bitcoin ETF Inflows Reach $562 Million as Bitcoin Eyes New All-Time High
Bitcoin ETFs (Exchange-Traded Funds) in the United States experienced a net inflow of $562 million on March 4, as the price of Bitcoin crossed $68,000, inching closer to its all-time high around $69,000. This marked the third largest day of inflows for Bitcoin ETFs since their trading inception on January 11.
The March 4 inflow occurred despite withdrawals from several smaller players and the Grayscale Bitcoin Trust (GBTC), which saw a withdrawal of $368 million on the day. iShares BlackRock Bitcoin Trust led with an inflow of $420 million, followed by Fidelity’s Wise Origin Bitcoin Trust with $404 million. The net inflow to Bitcoin ETFs on this day was ten times the amount of new BTC added to the supply through mining activities.
Spot Bitcoin ETF trading volume on March 4 totaled $5.5 billion, making it the second-highest volume day since the launch of these products. High trading volumes and institutional demand mean that Bitcoin ETFs, exchange-traded products, and trackers now manage approximately 1 million Bitcoin, about 5.13% of the total circulating Bitcoin supply, according to a report by K33 Research. Of this 1 million Bitcoin, nearly 83% is managed by U.S.-based ETFs and futures contracts.
In the two months following their launch, spot Bitcoin ETFs have seen a net Bitcoin inflow of $7.5 billion despite more than $9 billion in outflows. BlackRock’s IBIT has now reached $10 billion in assets under management, a milestone that took gold ETFs nearly two years to achieve. Bitcoin ETFs may see an increase in demand in the coming days as BlackRock moves to buy Bitcoin for its Strategic Income Opportunities Fund. With the upcoming Bitcoin halving scheduled for April, which will cut the daily new Bitcoin supply in half, current market demand is already ten times over the new supply, potentially acting as a catalyst for further price increases in Bitcoin.
