Robust Inflows Propel Bitcoin ETFs to $2.2 Billion in a Week

Bitcoin exchange-traded funds (ETFs) demonstrated exceptional strength, witnessing net inflows exceeding $2.2 billion from February 12 to 16. This surge in capital surpassed the combined volumes of all other 3,400 ETFs available in the United States, as reported by Bloomberg analyst Eric Balchunas.

The iShares Bitcoin Trust (IBIT), managed by BlackRock, emerged as the primary beneficiary, attracting a substantial $1.6 billion in capital during the week, according to data from BitMEX Research. Balchunas highlighted IBIT’s remarkable year-to-date performance, noting that it accounted for 50% of BlackRock’s total net ETF flows among its 417 ETFs.

Other prominent Bitcoin ETFs also experienced significant positive activity. Fidelity’s Wise Origin Bitcoin Fund attracted $648.5 million, while the Ark 21Shares Bitcoin ETF and Bitwise Bitcoin ETF pulled in $405 million and $232.1 million, respectively, over the same period.

However, the Grayscale Bitcoin Trust faced challenges, witnessing outflows of $624 million from February 12 to 16, impacting the collective performance of newly approved spot Bitcoin ETFs. Since its transition from an over-the-counter product to a spot ETF on January 10, Grayscale’s fund has seen over $7 billion in capital outflows.

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 is believed to be a significant driver of Bitcoin’s recent price gains, with the cryptocurrency surging 91% in the past four months.

During the observed week, Bitcoin recorded a nearly 7% gain, currently trading at $51,434 and displaying a 24% increase in February.

Recognizing the impact of these developments, major banks and financial institutions are actively engaging with the new ETFs. In a letter dated February 14, a coalition representing Wall Street’s leading firms urged the SEC to consider modifications to the Staff Accounting Bulletin 121, aiming to facilitate banks’ role as custodians for BTC funds.