Bitcoin ETFs Soar: Record-Breaking $2.2 Billion Influx in One Week

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February 12–18 witnessed an impressive influx of over $2.2 billion into Bitcoin ETFs, as senior Bloomberg analyst Eric Balchunas reported. This surge exceeded expectations and outpaced inflows into any other ETF among the 3,400 available in the United States. 

Despite the crypto sector’s rapid growth and the attention garnered by Bitcoin ETFs, Vanguard stands as a beacon of traditional finance dominance, absorbing an astounding $30 billion in inflows since the launch of Bitcoin ETFs. 

This figure is six times greater than Bitcoin ETFs’ achievements and highlights Vanguard’s commitment to its founder Jack Bogle’s vision. Vanguard remains firm in its refusal to engage with the cryptocurrency market, even removing futures-backed Bitcoin funds from its platform. 

The #BoycottVanguard movement on social media platforms has failed to sway Vanguard’s steadfast approach, reinforcing the firm’s commitment to value-generating assets over speculative cryptocurrencies.

BlackRock’s iShares Bitcoin Trust (IBIT) led the pack in capturing positive flows, accumulating $1.6 billion during the week. Notably, IBIT has invested $5.2 billion year-to-date, constituting 50% of BlackRock’s total net ETF flows. 

Balchunas contended that BlackRock’s Bitcoin ETFs have become the “TradFi Moby Dick,” outshining their competitors. The variations in unrealized gains across different funds, particularly contrasting IBIT with Invesco-Galaxy’s fund BTCO, reveal distinct buying patterns and dollar-cost averaging strategies.

Bitcoin’s recent price gains, with a 91% surge in the past four months, are backed up with the reason of spot Bitcoin ETF approval by the U.S. SEC on January 10. 

Balchunas mentioned, “The 10 bitcoin ETFs netted +$2.3b last week.” The notable inflow of funds into Bitcoin ETFs has coincided with Bitcoin’s positive price momentum. 

The inflows into Bitcoin ETFs contributed to Bitcoin’s climb, reaching nearly 7% during the week and trading at $52,100 at the time of writing. Central banks are also taking notice, with a trade group coalition urging the SEC to consider modifications for banks to act as custodians of BTC funds.

It is important to note that while Bitcoin ETFs continue to attract substantial inflows,  “Again, this is all net GBTC bleed,” Balchunas contends. The Grayscale Bitcoin Trust experienced a notable outflow of $624 million from Feb. 12–16. The crypto community is abuzz with excitement as Bitcoin ETFs continue to grow.