KEY POINTS
Recently, Bitcoin soared to a record-breaking high of $69,324 on March 5, accompanied by a notable increase in direct investments into Bitcoin ETFs within the United States.
On the day Bitcoin set this new record, BlackRock’s iShares Bitcoin Trust (IBIT) ETF saw a substantial surge in daily inflows, reaching an all-time high of $788 million. Likewise, Farside, an investment management firm, reported a whopping $648.3 million pouring into the market.
Meanwhile, Grayscale Bitcoin Trust and Invesco Galaxy Bitcoin ETF experienced net losses totaling $332.5 million and $14.2 million, respectively, on March 5. The Valkyrie Bitcoin ETF didn’t attract any new investments that day.
Despite this, the Bitcoin ETF sector has amassed an impressive $8.5 billion in total investments to date. This figure holds even after accounting for the consistent withdrawals from GBTC, which now total $9.6 billion.
In stark contrast, GBTC’s Bitcoin reserves have dwindled by 33%, dropping from 620,000 BTC at its ETF transition to approximately 420,680 BTC currently. Despite this, the collective trade volume for all US-based spot Bitcoin ETFs has exceeded $10 billion, thanks to robust investments and a sustained bullish trend in the market.
A chart tracking the daily trading volume of these ten spot BTC funds since their inception on January 11 shows a remarkable trajectory. Commenting on these figures, Eric Balchunas highlighted in a March 5 post that such numbers are quite extraordinary for ETFs that are less than two months old, referring to them as “banana numbers.”
