Bitcoin ETFs Experience $2 Billion Increase in Inflows, Led by BlackRock
BlackRock leads the charge as Bitcoin ETFs attract $2 billion in inflows to date. Spot ETFs have accumulated 258,770 BTC as of Friday morning, proving profitable for investors since their launch last month.
Bitcoin-backed funds, excluding Grayscale Bitcoin Trust, have seen $11.4 billion in capital inflows over the past five weeks. Issuers such as BlackRock, Fidelity, Ark, 21Shares, and Bitwise have used the incoming cash to purchase bitcoin for ETF shareholders, primarily through Coinbase and Coinbase Pro, and occasionally through prop trading firms like Flow Traders.
As of the latest data, the value held by the ETFs stands at $13.48 billion, which is $2.08 billion more than the funds attracted. The price per coin is at $52,100. Buyers of these funds have experienced an increase of over 18% since their debut on January 11, surpassing the less than 12% gain in bitcoin itself.
BlackRock's IBIT Fund Leads With $6.04 Billion Worth of Bitcoin
BlackRock's IBIT fund manages 115,991 BTC ($6.04 billion) from $5.17 billion in inflows, showcasing an appreciation of over $870 million or 17%. Different funds exhibit variations in unrealized gains, demonstrating various investing patterns. For example, BlackRock's steady allocations over time reflect a dollar-cost averaging strategy into bitcoin, while Invesco-Galaxy's BTCO fund experienced significant inflows during a period of bitcoin price drop, resulting in higher unrealized profits.
BTCO, which attracted $241.4 million in net flows, currently holds 5,970 BTC worth $311 million, with a difference of nearly $70 million, or 29%. Funds from Valkyrie, Fidelity, and VanEck have also exceeded BlackRock's gains, achieving approximately 20% gains. Notably, BTCO is the only bitcoin ETF, apart from GBTC, to record outflows since its launch.
Investors Take Profits, Impacting Invesco-Galaxy and Grayscale Funds
Some investors have taken profits, leading to a withdrawal of over 1,500 BTC ($78.1 million) from the Invesco-Galaxy fund between February 9 and 14. This accounted for about 20% of its treasury at the time. Meanwhile, Grayscale's flagship fund, now also an ETF, has witnessed significant outflows, averaging nearly 2,400 BTC ($124.9 million) per trading day this month. This has resulted in a potential gain loss of 23% from the bitcoin pulled from GBTC since January 11.
Analyst comment
Positive news: Bitcoin ETFs have attracted $2 billion in inflows, with BlackRock leading the charge. Investors have invested billions into these funds, which have proven to be profitable so far.
Short analysis: Given the strong inflows and profitability of Bitcoin ETFs, it is likely that the market will continue to see increased interest and investments in these funds. This could potentially drive up the price of Bitcoin and further solidify the role of ETFs in the cryptocurrency market.
