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On Monday, Nasdaq-traded spot Bitcoin (BTC) exchange-traded funds (ETFs) witnessed an inflow of $15.4 million, marking a positive shift after five consecutive days of outflows, according to preliminary figures from investment company Farside.
The inflow was predominantly led by Fidelity’s FBTC, which garnered $261.8 million, and was closely followed by BlackRock’s IBIT with a $35.5 million collection. Other ETFs such as BITB, BTCO, EZBC, and BRRR also saw inflows ranging from $11 million to $20 million. Contrarily, Grayscale’s ETF (GBTC) experienced a substantial outflow, losing over $350 million.
The previous week was challenging for these ETFs, with a total outflow of $887.6 million, primarily due to significant withdrawals from GBTC.
What are Bitcoin ETFs?
The launch of nearly a dozen spot ETFs in the U.S. on January 11 offered investors an opportunity to invest in Bitcoin without the complexities of direct ownership and storage. These funds directly invest in Bitcoin and avoid the necessity for position rollovers, distinguishing them from futures-based ETFs introduced in October 2021.
The newfound accessibility to Bitcoin can also potentially boost Bitcoin’s legitimacy and attract a broader investor base, potentially enhancing market liquidity and stability. Furthermore, it simplifies investing in Bitcoin through familiar stock exchange platforms and regulated environments, mitigating some security concerns and allowing tightly regulated institutions to partake in the market.
Since the trading of spot ETFs commenced, the value of Bitcoin has surged by more than 50% to $70,750. On Monday, the price of Bitcoin experienced a more than 4% increase, momentarily exceeding $71,000.
The development follows the recently approved U.S. spot Bitcoin ETFs experiencing a day of record-breaking inflows exceeding $1 billion on Mar. 12.
Featured image: Ideogram
