Bitcoin ETFs: $2.2B Net Inflows

Bitcoin exchange-traded funds (ETFs) in the United States have seen significant inflows, totaling over $2.2 billion between February 12 and February 16. This surpasses the inflows received by any other ETF available in the country, as pointed out by Bloomberg analyst Eric Balchunas. BlackRock’s IBIT fund received the majority of these capital influxes, with $1.6 billion in positive flows over the past week. Fidelity’s FBTC, Ark 21Shares’ ARKB, and Bitwise’s BITB also recorded substantial inflows during the same period, attracting millions of dollars each. The ETFs’ overall performance has been dampened by outflows from Grayscale’s GBTC, which has experienced $624 million in withdrawals as investors seek alternatives with lower fees.

Grayscale’s fund, which converted to an ETF on January 10, has lost over $7 billion in capital since then. The launch of these ETFs is believed to have contributed to Bitcoin’s recent price gains, with the cryptocurrency rising by 91% in the past four months. Market sentiment surrounding the SEC’s approval of these funds last month has fueled optimism among investors. In the week covered, Bitcoin has increased by almost 7%, currently trading at $51,434 and experiencing a 24% climb in February.

Major banks and financial institutions are also paying attention to the new ETFs. A trade group coalition representing Wall Street’s largest firms wrote a letter on February 14 to the SEC, requesting modifications to the Staff Accounting Bulletin 121 (SAB 121) to allow banks to serve as custodians for BTC funds. This indicates the growing recognition and acceptance of these ETFs by traditional financial entities.