Bitcoin ETFs Rally sees Major Inflows Amidst March 5th Milestones

06. Mar 2024 Posted by Laurent C. on News

On March 5th, among the 10 approved ETFs, the Grayscale Bitcoin Trust and Invesco Galaxy Bitcoin ETF were the only two experiencing net outflows, with $333 million and $14 million respectively. Conversely, the BlackRock iShares Bitcoin Trust (IBIT) ETF saw a remarkable surge in daily inflows, reaching $788 million, surpassing its previous high of $612 million on Feb. 28.

This surge in investments coincided with significant milestones in the Bitcoin ecosystem, notably reaching a new all-time high of $69,324 on March 5th, alongside a notable influx of investments in spot Bitcoin ETFs in the United States, a total inflows of $650 million on the day Bitcoin hit its all-time high.

The Grayscale Bitcoin Trust (GBTC) and the Invesco Galaxy Bitcoin ETF were the only ones recording net outflows on March 5th, while the day's net inflows were primarily driven by IBIT and supported by other funds such as the Fidelity Wise Origin Bitcoin Fund, Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF, Franklin Bitcoin ETF (FBTC), VanEck Bitcoin Trust ETF, and WisdomTree Bitcoin ETF.

Contrarily, the Valkyrie Bitcoin ETF registered no inflows. Despite consistent outflows from GBTC amounting to $9.6 billion cumulatively, the Bitcoin ETF ecosystem has garnered $8.5 billion in total inflows to date.

Historical data highlights IBIT and FBTC as major contributors to the ecosystem, both consistently reporting significant inflows without any net outflows. As of March 5th, IBIT and FBTC contributed $9.2 billion and $5.3 billion respectively.

In contrast, GBTC witnessed a decrease in Bitcoin holdings by 33%, from 620,000 BTC at its ETF conversion to approximately 420,680 BTC at the present time. With substantial investments and a bullish market, the combined trading volume of U.S.-based spot Bitcoin ETFs has exceeded $10 billion to date. Bloomberg ETF analyst Eric Balchunas commented on these impressive figures, describing them as "bananas numbers for ETFs under [two months] old" in a March 5th X post reporting the data.