- Bitcoin price has been rallying, crossing $46,000 amid growing investor demand as shown by record inflows into Bitcoin ETFs.
- On Feb. 8, spot Bitcoin ETFs saw their third-largest daily inflow ever at $403 million, even as GBTC saw $100 million in outflows. Total inflow into Bitcoin ETFs now exceeds $2.1 billion.
- Diminishing Bitcoin supply from ETF inflows coupled with surging institutional demand could propel Bitcoin price higher, especially with the halving approaching.
The price of Bitcoin has been on an upward trend, crossing $46,000 and reaching a multi-week high. This comes alongside record inflows into Bitcoin exchange-traded funds (ETFs), indicating growing demand from investors.
Spot Bitcoin ETFs See Their Third-Largest Inflow Day
On February 8, spot Bitcoin ETFs saw inflows totaling $403 million, marking their third-largest influx ever. This is despite over $100 million exiting the Grayscale Bitcoin Trust (GBTC) on the same day. According to a report by Farside, the total inflow into spot Bitcoin ETFs has exceeded $2.1 billion since their launch on Jan. 11, showing strong and sustained demand.
BlackRock’s Bitcoin Trust Leads With $204 Million Inflow
The BlackRock iShares Bitcoin Trust (IBIT) leads the ETF inflows, taking in $204 million on Feb. 8. Other ETFs seeing large inflows include Fidelity ($128 million), 21Shares ($86 million), and Bitwise ($60 million). Meanwhile, GBTC saw $102 million in outflows. IBIT also became the first ETF to exceed GBTC’s daily trading volume.
Diminishing Bitcoin Supply Meets Growing Institutional Demand
The net inflows into Bitcoin ETFs equate to around 8698 BTC being pulled off the market and put into cold storage. This decreasing supply comes alongside surging demand from institutional investors. With the next Bitcoin halving under 70 days away, the constricting supply could propel Bitcoin price to new highs.
Conclusion
The sustained inflows into Bitcoin ETFs signals growing appetite for crypto exposure from investors. This demand coincides with dwindling Bitcoin supply, creating market conditions that could push the price higher. The success of Bitcoin ETFs underscores the increasing mainstream adoption of digital assets.
