In Less Than Two Months, the Nine New Bitcoin Spot ETFs Have Accumulated 300,000 Bitcoins, Driving the Price of BTC to Over $57,000
With daily net inflows of 8,000 to 9,000 BTC and the future supply reduction due to the halving, bullish pressure on BTC is intensifying.
The Bitcoin ETFs are recording record trading volumes, indicating strong market demand for Bitcoin spot products.
In a context of high demand for Bitcoin, the new Bitcoin Spot ETFs have experienced explosive growth, accumulating 300,000 BTC, or approximately $17 billion, in less than two months since their introduction to the market on January 11. This surge has propelled the price of BTC to a new two-year peak, surpassing $57,000, with its market capitalization exceeding $1.1 trillion.
Increasing Demand Against Limited Supply
These nine new Bitcoin ETFs (excluding Grayscale’s GBTC) have seen their net inflows surpass $6 billion, capturing nearly 1.5% of the total supply of Bitcoin, limited to 21 million BTC.
With a daily production of 900 BTC by miners and net inflows into Bitcoin ETFs reaching 8,000 to 9,000 BTC each market day, the supply reduction due to the upcoming halving suggests a highly bullish scenario for the price of BTC.
Record Trading Volume for Bitcoin ETFs
On February 26, these ETFs also set records for trading volume, with $2.4 billion traded in a single day, surpassing the previous record of $2.2 billion. BlackRock’s IBIT and Fidelity’s FBTC lead the way with $1.29 billion and $576 million in volume, respectively.
Grayscale: Significant Reduction in Net Outflows
Meanwhile, Grayscale’s GBTC has seen a significant decrease in net outflows, indicating a slowdown in the selling of its shares, particularly impacted by massive sales from FTX and other companies. These net outflows, which reached $5.64 billion at the end of January, have reduced to $2 billion in February, indicating potential amplified net inflows.
