Bitcoin ETFs Attract Over $2.2 Billion Inflows, Surpassing Other Options
In a surprising turn of events, **Bitcoin Exchange Traded Funds (ETFs)** experienced an impressive influx of over $2.2 billion during the week of February 12–18, according to senior Bloomberg analyst Eric Balchunas. This surge not only exceeded expectations but also surpassed the inflows into any other ETF among the 3,400 options available in the United States.
**Vanguard Stands Firm Against Bitcoin**
Despite the rapid growth of the crypto sector and the increasing attention garnered by Bitcoin ETFs, Vanguard remains unwavering in its stance against digital currencies. The firm has absorbed an astonishing **$30 billion** in inflows since the launch of Bitcoin ETFs, a figure that is six times greater than the achievements of these ETFs themselves. Vanguard’s commitment to its founder Jack Bogle’s vision is clearly demonstrated by its refusal to engage with the cryptocurrency market, even going so far as to remove futures-backed Bitcoin funds from its platform. The social media campaign #BoycottVanguard has failed to persuade the firm, further solidifying its dedication to value-generating assets rather than speculative cryptocurrencies.
**BlackRock Leads Inflows With iShares Bitcoin Trust**
BlackRock’s **iShares Bitcoin Trust (IBIT)** emerged as the frontrunner in capturing positive flows, accumulating a staggering **$1.6 billion** during the week. Notably, IBIT has invested a total of **$5.2 billion** year-to-date, making up 50% of BlackRock’s overall net ETF flows. Balchunas described BlackRock’s Bitcoin ETFs as the “TradFi Moby Dick,” outshining its competitors. The differences in unrealized gains between different funds, especially when comparing IBIT with Invesco-Galaxy’s fund BTCO, highlight unique buying patterns and dollar-cost averaging strategies.
**Bitcoin’s Price Surge**
Bitcoin’s recent price surge, with a **91% increase** in the past four months, can be attributed to the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10. Balchunas stated, “The 10 bitcoin ETFs netted +$2.3b last week.” The substantial inflow of funds into Bitcoin ETFs coincided with Bitcoin’s positive price momentum. As of the time of writing, Bitcoin was trading at **$52,100**, with a nearly **7% increase** during the week. Central banks have also taken notice of this trend, with a coalition of trade groups urging the SEC to consider allowing banks to act as custodians of Bitcoin funds.
**Grayscale Bitcoin Trust Faces Outflow**
While Bitcoin ETFs continue to attract significant inflows, it is worth noting that the Grayscale Bitcoin Trust experienced a notable outflow of **$624 million** from February 12–16. Nevertheless, the crypto community remains enthusiastic as Bitcoin ETFs continue to grow.
Disclaimer: Elena is an expert in technical analysis and risk management in the cryptocurrency market. She has over 10 years of experience in writing and is an avid journalist with a passion for researching new insights in the crypto arena.
Analyst comment
Positive news: Bitcoin ETFs Attract Over $2.2 Billion Inflows, Surpassing Other Options
Short analysis: The impressive influx of over $2.2 billion into Bitcoin ETFs indicates growing investor interest and confidence in the cryptocurrency. This positive trend is expected to continue, driving the market further up.
