The inflow recorded by spot Bitcoin ETFs nearly surged to $500 million yesterday, as the price of Bitcoin hit a level not seen for 2 years.
The price of Bitcoin (BTC) passed the $50,000 mark yesterday following explosive net inflows into spot BTC exchange-traded funds (ETFs). This was the first time Bitcoin successfully beat $50K since December 2021.
Provisional data provided by investment management outfit Farside Investors reveals that IBIT, the ETF from giant asset manager BlackRock Inc (NYSE: BLK) saw its total holdings rise to $4.1 billion after Monday’s net inflow of $375 million. In addition, Fidelity Investment ETF, FBTC, recorded a net inflow of $152 million, raising its total holdings to $3.2 billion.
GBTC ETF Lost $95 Million
There were also other inflows recorded, with $33 million in Bitwise’s BITB and $40 billion in inflows for ARK Invest and 21Shares’ ARKB. Unfortunately, there were some recorded outflows, with $20.8 million leaving Invesco and Galaxy’s BTCO and a heavy $95 million flowing out of Grayscale Investments’ GBTC. Generally, the Newborn Nine ETFs recorded a net inflow of $493 million yesterday.
The price of the king coin has corrected to below $50K, according to data from CoinMarketCap. Trading at $49,795, BTC has risen nearly 17% in seven days, and over 4% in the last 24 hours.
The numbers recorded by spot Bitcoin ETFs point to general bullishness and interest in the king coin from the traditional sector. According to popular entrepreneur and tech investor Anthony Pompliano, Wall Street is very interested in Bitcoin. In an X post with an interview on CNBC’s Squawk Box, Pompliano expressed bullish sentiment, saying:
“Wall Street LOVES Bitcoin. They are buying up 12.5x more Bitcoin per day than the network can produce. The march to a new all-time high is underway if this continues.”
According to Pompliano, about 80% of Bitcoin’s total supply has been stagnant over the last six months. He also added that only $200 billion has been trading actively. Highlighting this, he then stated that the ETFs have successfully accumulated 5% of the king coin’s tradable supply in around a month.
Bitcoin ETF Keeping Up With Bullish Inflow
On February 8, Farside data showed that net inflows to spot Bitcoin ETFs hit $403 million. According to the data, BlackRrock’s IBIT was the highest at $204 million, followed by FBTC from Fidelity at $128 million. While ARK’s ETF recorded $86 million in net inflows on the day, Bitwise had $60 million. Unfortunately, Grayscale had outflows of more than $101 million.
As of February 9, the spot Bitcoin ETFs, excluding Grayscale’s GBTC, had amassed 192,000 Bitcoins, nearly 1% of the entire network’s circulating supply. The number also surpassed the total held by MicroStrategy Inc (NASDAQ: MSTR), which was about 190,000 Bitcoin as of its last quarterly report.
Bitcoin’s recent performance has influenced BitMEX co-founder Arthur Hayes to change his mind about the king coin’s chances. During a recent interview, Hayes said he now believes Bitcoin can hit its $70,000 all-time high. Previously, Hayes preferred to be bearish in the short-term, forecasting a further correction after Bitcoin hit $35,000. This was influenced by the market trajectory in March 2023, after Bitcoin hit $40,000 and corrected to $38,000.
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