Bitcoin exchange-traded funds (ETFs) have continued to attract significant investor interest, with net inflows exceeding $2.2 billion from February 12th to 16th. BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the frontrunner, receiving a substantial portion of the week’s inflows, totaling $1.6 billion.
According to data from BitMEX Research, IBIT alone has accumulated $5.2 billion year-to-date, representing 50% of BlackRock’s total net ETF flows across 417 ETFs. This influx of capital underscores the growing appeal of Bitcoin ETFs among investors.
Fidelity’s Wise Origin Bitcoin Fund also witnessed notable inflows, attracting $648.5 million over the past five trading sessions. Similarly, the Ark 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF pulled in significant capital inflows of $405 million and $232.1 million, respectively, during the same period.
However, outflows from the Grayscale Bitcoin Trust have impacted the overall performance of newly approved spot Bitcoin ETFs. The fund experienced withdrawals totaling $624 million from February 12th to 16th, reflecting ongoing selling pressure. Since its conversion to a spot ETF on January 10th, 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 10th is believed to have contributed to Bitcoin’s recent price gains. The cryptocurrency has surged by 91% in the past four months, supported by positive market sentiment surrounding ETF approval.
Amidst this bullish momentum, Bitcoin gained nearly 7% over the week and is currently trading at $51,434, marking a 24% increase for February.
Furthermore, major banks and financial institutions are recognizing the significance of the new ETFs. In a letter dated February 14th, a coalition of trade groups representing Wall Street’s leading firms urged the SEC to consider revisions to Staff Accounting Bulletin 121. These modifications would enable banks to serve as custodians for BTC funds, further integrating cryptocurrencies into traditional financial infrastructure.
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