Since the beginning of this year, the US Securities and Exchange Commission (SEC) has allowed ten exchange-traded Bitcoin funds (ETFs), leading to regular and massive inflows into these funds. Companies like Blackrock, Fidelity, Ark/21Shares, and Van Eck have enabled investors to invest in Bitcoin spot ETFs since January 2024, allowing individuals to invest in BTC without directly purchasing and holding the currency themselves. This move has made ETFs extremely popular, and they have now reached a new milestone: on Tuesday, net inflows into the ETFs surpassed one billion dollars, as reported by The Block.
Blackrock’s Spot Bitcoin ETF Sets New Record
Blackrock’s ETF recorded a record inflow of $849 million. In terms of Bitcoin, this amounted to a record inflow of 14,706 BTC. The total net inflows since January 11, 2024, have now reached $4.1 billion. Additionally, as of yesterday, spot Bitcoin ETFs hold more than 90 percent of the daily trading volume of ETFs offering BTC exposure – an all-time high. In contrast, Bitcoin futures ETFs now only account for ten percent of the market share.
“Exceeding one billion dollars in net inflows more than a month after launch – a new record – is incredibly impressive for any ETF,” said George Calle, VP of Research at The Block. The massive inflows have significantly exceeded analysts’ expectations.
BTC and Altcoins Experience Massive Surge
Spot Bitcoin ETFs are a significant part of the massive surge that BTC is experiencing these days. This week, the largest cryptocurrency reached over $70,000 for the first time ever. This development also has a strong influence on altcoins. The largest altcoin, Ethereum, also surpassed the $4,000 mark on Monday morning and is approaching its all-time high.
