In less than two months since their public debut on January 11, the nine new spot Bitcoin exchange-traded funds (ETFs) have accumulated 300,000 Bitcoin, which is equivalent to $17 billion. These ETFs have seen net inflows surpassing $6 billion. The Bitcoin holdings of these ETFs make up approximately 1.5% of the total supply of Bitcoin, which is capped at 21 million BTC. With increasing demand and limited supply, the price of Bitcoin reached a new yearly high of over $57,000 on February 27. Currently, Bitcoin is only 20% lower than its all-time high of nearly $69,000, and its market capitalization has exceeded $1.1 trillion.
The bullish momentum of the spot Bitcoin ETFs continued as they received over half a billion dollars in net inflow on Monday, February 26. On that day, the ETFs also recorded their highest trading volume, reaching $2.4 billion, surpassing the previous record of $2.2 billion set on the first trading day, January 11.
Among these ETFs, the iShares Bitcoin Trust by BlackRock led the volume charts with $1.29 billion, followed by Fidelity’s Wise Origin Bitcoin Fund with $576 million. While spot Bitcoin ETFs continue to experience high inflows, Grayscale’s Bitcoin Trust (GBTC) marked its lowest outflow day with only $22 million leaving the fund. This is the third consecutive trading day that the net outflows of GBTC have decreased.
Unlike other funds, GBTC has continuously experienced net outflows since its launch due to heavy selling of GBTC shares by FTX and other investors. By the end of January, GBTC saw withdrawals totaling $5.64 billion. However, outflows have decreased in February, amounting to $2 billion thus far. In total, $7.6 billion has been withdrawn from the GBTC ETF since its conversion.
The continuous net inflows and declining outflows of GBTC indicate a strong market demand for spot Bitcoin ETFs. This demand could further increase as the Bitcoin halving event approaches, which will reduce the supply of new Bitcoin entering the market. Currently, miners add a total of 900 new BTC to the daily supply. However, spot Bitcoin ETFs are seeing net inflows of nearly 8,000–9,000 BTC each trading day, further reducing the supply as demand continues to grow. This scenario is considered bullish for the price of BTC.