- Bitcoin spot ETFs launched in January 2023 and have seen over $4 billion in net inflows as of mid-February, according to CoinShares research.
- Inflows into spot bitcoin ETFs have exceeded new bitcoin supply from mining in their first month. Daily inflows are 46 times higher than bitcoin’s post-halving daily issuance rate.
- BlackRock’s iBIT ETF saw the highest single-day inflow of $493 million on February 14, making up 70% of total spot bitcoin ETF inflows for the day.
Bitcoin spot exchange-traded funds (ETFs) have seen tremendous growth in assets under management since launching in January 2023. According to a new report from CoinShares, total net inflows for these funds have now exceeded $4 billion.
Rapid Asset Growth for Spot Bitcoin ETFs
The first spot bitcoin ETFs debuted on January 11, 2023, when 11 different issuers launched funds on the same day. These new ETFs provide direct exposure to bitcoin by holding the cryptocurrency, unlike futures-based bitcoin ETFs.
Since launch, net inflows have steadily climbed, reaching over $4 billion as of February 14, according to CoinShares Head of Research James Butterfill. The funds saw a record single-day inflow of $651 million on February 13.
In their first month, flows into spot bitcoin ETFs have already exceeded new bitcoin supply from mining. CoinShares notes that at the current pace, daily inflows would be 46 times higher than bitcoin’s post-halving daily issuance rate.
BlackRock’s IBIT Leads Funds in Inflows
Among individual funds, BlackRock’s iBIT ETF saw the highest single-day inflow, taking in $493 million on February 14. This represented 70% of total inflows across all spot bitcoin ETFs for the day.
Meanwhile, Grayscale’s GBTC saw a notable outflow of $7.283 billion the same day. Other spot bitcoin ETFs combined for a daily inflow of $704 million.
Conclusion
The rapid early growth of spot bitcoin ETFs highlights significant pent-up demand from institutional investors. As the ETF space matures, it will be interesting to see whether assets continue pouring in at this brisk pace. For now, the launch of spot bitcoin ETFs marks a major milestone for crypto adoption in traditional finance.
