Spot BTC ETF Breaks New Record as it Attains $1 Billion Inflows in 24 Hours 

Spot BTC ETF Breaks New Record as it Attains $1 Billion Inflows in 24 Hours 

Latest update on BTC ETF says that Spot Bitcoin ETFs saw  $1 billion in capital inflow in a single day during a massive wave of investor interest that created a record for the cryptocurrency market, a development experts have described as impressive. A record-breaking inflow of 14,706 BTC was reported on March 12, indicating a rise in investor confidence and enthusiasm for Bitcoin ETFs.

Since January 11, 2024, the total net inflow into Bitcoin ETFs has surpassed the milestone of $4.1 billion, enhancing the credibility of Bitcoin as a widely accepted investment vehicle. Blackrock’s past huge investment into the market has been linked to the market’s general influx and fueled the bullish momentum around Bitcoin ETFs.

The competitors: Fidelity Wise Origin Bitcoin Fund and BlackRock’s iShares Bitcoin ETF have recorded significant inflows in recent times. BlackRock’s ETF had recorded $849 million in total inflow, a development that has contributed to the general flooding of the market.

Expectations High, As Grayscale Hints on Bitcoin Mini Trust

With improved legal clarity and ongoing development of institutional infrastructure, Bitcoin ETFs are expected to become more significant in the global financial landscape. Grayscale has refused to publish the shares of its new investment products at the moment; according to the filing, the company chose the name Grayscale Bitcoin Mini Trust.

The arrangement requires that the company holds a specific amount of BTC from GBTC. The current shareholders from GBTC will be getting stocks in the proposed Mini Trust, which will be exchanged for Bitcoin assets held by Grayscale BTC. The investment company has yet to decide a suitable fee for the proposed Mini Trust. 

GBTC Records 50% Drop in Market Share for the First Time 

BitMEX Research revealed that the iShares Bitcoin ETF (IBIT) also recorded an $849 million inflow on March 12, while the total spot BTC ETF inflow reached $1 billion. However, the IBIT Assets under management (AUM) passed 200,000 BTC this week. Data also showed that the total inflow of BTC ETF, as of January 11, hit $11.1 billion.

As of press time, the spot BTC ETF holds 90% of all daily trading volume for ETFs, hence giving more exposure to BTC, thus, the growing trading volume, while BTC futures ETF has only 10% of the market share. The United States Franklin Bitcoin ETF (EZBC) had the lowest trade inflow after recording  $148 million from its inception.

Cointelegraph data shows that the Grayscale BTC had (for the first time) a 50% decline in market share – as against the 99.5% fund accounted for in their Assets Under Management (AUM) during their first trading day. However, the steady daily outflow from Grayscale BTC worth $329 million daily as of last week has taken the larger share of the ETF market. 

Experts Express Surprise, As BlackRock’s ETF Records $849 Million inflow

The positive narratives used during the launch of the Grayscale Bitcoin Mini Trust are in line with the guidelines of the Federal Reserve interest rate, which is believed to be one of the factors that pushed the BTC to a new all-time high.

The Block’s Vice President (VP) of Research, George Calle, stated that for the BTC ETF industry to record over $1 billion in total inflows in over a month of launch is nothing less than impressive for the ETF as a sector.

Brian Rudick, GSR Research Analyst, told The Block yesterday that the United States spot BTC ETF has performed optimally beyond expectations. Brian added that the over $10 billion inflows in two months was what most analysts thought it would have achieved in its first year of operation.

However, there have been some arguments as to whether the inflows will grow further, considering the issuer’s efforts to attract more people to participate. These efforts are seen in their launch of extra wealth manager products to normalize Grayscale BTC outflows.

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Chad Butler
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Chad Butler

Chad Butler, a renowned name in crypto journalism, excels in translating complex blockchain topics into lucid prose. His astute analyses and timely updates make him a trusted voice in the cryptocurrency landscape. Through his articles, Chad consistently offers readers an informed and insightful perspective on the evolving digital market

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