In an unprecedented market move, Bitcoin Exchange-Traded Funds (ETFs) in the United States have experienced a surge in investments, with inflows exceeding $1 billion on March 12th, as reported by BitMEX Research. The event underscores the growing investor interest in cryptocurrency as an asset class through regulated investment vehicles. Blackrock’s IBIT product, in particular, showcased a notable accumulation, reaching over 200,000 BTC.
Unprecedented Investment Wave
The Bitcoin market observed a single-day record investment of $849 million at a Bitcoin valuation of $72,841.18. Since January 11, 2024, the cumulative net inflow for Bitcoin ETFs has surpassed $4.1 billion, indicating a robust appetite among investors for this form of digital asset exposure.
Spotlight on ETF Dominance
Spot Bitcoin ETFs currently dominate over 90% of the daily trading volume market share, the highest on record. This contrasts with Bitcoin futures ETFs, which constitute about 10% of the market share. The increasing preference for spot ETFs over futures-based counterparts reflects the market’s desire for direct exposure to Bitcoin’s performance.
Experts, including The Block’s Vice President of Research George Calle, have acknowledged the significance of such massive inflows in a short time, labeling it an impressive feat for the ETF industry. GSR Research Analyst Brian Rudick expressed a positive outlook, predicting a continued uptrend in capital flow into US spot Bitcoin ETFs due to factors like increased marketing efforts, inclusion in asset manager portfolios, and the normalization of outflows from other vehicles like GBTC.
Bitcoin itself is experiencing a surge in its price, establishing a new all-time high at $73,311. While its market cap nears $1.45 trillion, the trading volume, although up by 9.61% at $62.8 billion, is yet to reach the peak levels observed in recent days.