Bitcoin ETFs Surge as Cryptocurrency Market Sees Inflows

Net inflows into spot bitcoin ETFs surged towards $9 billion on Thursday as the cryptocurrency experienced a significant price uptick.

According to data from Bloomberg, inflows for the day reached $405 million, marking the third-highest total since the SEC greenlit these new investment products in early January. However, Grayscale’s Bitcoin Trust GBTC stood out with over $101 million in outflows, continuing its streak of losses. Excluding GBTC, net inflows are at $8.56 billion.

Bloomberg analyst James Seyffart highlighted the significant inflow, tweeting, “Cointucky Derby Update. BIG net inflow day of over $400 mln.” Seyffart also pointed out that eight out of the ten ETFs that started trading on January 11 received money on Thursday. Notably, the Fidelity Wise Origin Bitcoin Fund (FBTC) became the second fund to surpass $3 billion in Assets Under Management (AUM), following BlackRock’s iShares Bitcoin Trust (IBIT).

FBTC and IBIT collectively accounted for over $332 million of outflows on Thursday. GBTC, since transitioning from a trust to an ETF approved by the SEC, has seen over $6.2 billion in assets vanish. Meanwhile, ETFs focused on the crypto sector, like Bitwise Crypto Industry Innovators ETF (BITQ), which includes holdings in miners and crypto exchange Coinbase, have seen significant gains, with BITQ rising more than 16% over the past week.

Bitcoin itself has experienced a surge, recently trading at $47,800, a nearly 6% increase over the past 24 hours and over 10% in the last seven days, reaching its highest level since early January.

This upward momentum in Bitcoin and other risk-on assets coincides with positive earnings reports from AI-serving and semiconductor companies such as ARM Holdings Plc and Nvidia Corp, with Nvidia jumping over 34% in the past month to hit a record high.

Analysts have expressed optimism about Bitcoin’s future, with LMAX Digital predicting it to surpass $50,000 and reach a new yearly high, while others remain even more bullish.

Stephane Ouelette, CEO of digital asset-focused advisory platform FRNT Financial, attributed the post-ETF approval downturn in Bitcoin to clients exiting high-fee products like GBTC, resulting in more stable market dynamics and a return to pre-ETF trends.


Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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