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Unprecedented $1 Billion Daily Inflows into ETFs Confirms Unceasing Demand for Bitcoin

Bitcoin ETFs achieve record-breaking inflows

Net inflows in Bitcoin ETFs surpassed the $1 billion mark for the first time on March 12. 

A significant uptick that underscores the growing investor confidence in the cryptocurrency sector:

"Investments into spot Bitcoin ETFs continue to soar as daily inflows breached $11.1 billion over the last 13 days," 

The surge was led by BlackRock’s iShares Bitcoin ETF (IBIT), which alone accounted for $849 million of the inflow. This landmark event was complemented by notable contributions from ARK 21Shares Bitcoin ETF (ARK), VanEck Bitcoin Trust ETF (HOLD), and Fidelity Advantage Bitcoin ETF (FBTC), which contributed $93 million, $82.9 million, and $51.6 million, respectively.

The escalating inflows into Bitcoin ETFs, coupled with a supportive bull run, have propelled the daily inflows of capital being stored by the Bitcoin network to reach an unprecedented $2 billion per day. This milestone further cements Bitcoin's position within the financial ecosystem, highlighting the robustness of its growth and the investor enthusiasm driving it. Amidst this bullish momentum, the market price of Bitcoin soared to a new height of $73,000, marking yet another accolade for the cryptocurrency's performance.

Bitcoin ETFs and market dynamics: a closer look

The iShares Bitcoin ETF (IBIT) by BlackRock, leading the charge with $849 million in inflows on March 12, now boasts a commanding $11.4 billion in total assets under management. This contrasts starkly with the Franklin Bitcoin ETF (EZBC), which, despite being part of the approved ETFs in the U.S., has seen the lowest inflows, totaling $148 million to date.

The Bitcoin network's capacity to store $2 billion in capital daily is a testament to the escalating interest and confidence investors place in cryptocurrency as a viable asset class. However, not all Bitcoin-related investment vehicles have experienced the same fortune. Grayscale's Bitcoin Trust (GBTC) has faced a decline, shedding $11.1 billion over the past 13 days, marking a significant shift in investor preference towards spot Bitcoin ETFs.

This transition is underscored by GBTC's market share dropping below 50% for the first time since the trading of spot Bitcoin ETFs commenced in the U.S. on January 11. Initially, Grayscale’s fund constituted approximately 99.5% of the total assets under management across all U.S. spot Bitcoin ETFs. The consistent outflows from GBTC, averaging $329 million per day last week, have notably eroded its dominance.