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Spot Bitcoin ETFs Surge Despite GBTC Outflows: British Investors Pour £403 Million Into Market

On 8th February, spot Bitcoin exchange-traded funds (ETFs) encountered their third-largest surge, amounting to £403 million.

The substantial inflow occurred despite over £100 million exiting the Grayscale Bitcoin Trust (GBTC).

The total influx into spot Bitcoin ETFs has surpassed £2.1 billion since their introduction on 11th January, indicating robust demand for BTC in the market.

The third-largest inflow day for spot BTC ETFs coincided with BTC’s price surpassing $46,000 to mark a fresh multiweek high, just £2,000 shy of new yearly highs.

Leading the ETF flow chart is BlackRock iShares Bitcoin Trust (IBIT) with an inflow of £204 million, followed by Fidelity with £128 million, ARK 21Shares with £86 million, and Bitwise with £60 million.

The remaining seven ETFs collectively witnessed £27 million in inflows, while GBTC recorded another £102 million in outflows.

IBIT also clinched the distinction of becoming the first ETF to surpass GBTC’s daily trading volume.

Nonetheless, the total trading volume of all 11 spot Bitcoin ETFs dipped below £1 billion for the first time since their inception.

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Bloomberg senior analyst Eric Balchunas underscored BlackRock’s overtaking of Grayscale in trading volume as a significant achievement, noting that it typically takes about five to 10 years for a new fund to surpass the category’s “liquidity king.”

Market analysts interpret the positive flow into Bitcoin ETFs as indicative of investors’ appetite and burgeoning demand.

The net flows into the ETFs imply that approximately £403 million, or roughly 8,698 BTC, was withdrawn from the market and transferred into cold storage.

Spot Bitcoin ETFs received approval from the United States Securities and Exchange Commission for listing on 10th January and commenced trading the following day.

Since their launch, spot BTC ETFs have witnessed record trading volumes, with over a billion dollars traded daily, indicating robust investor interest.

The forthcoming Bitcoin halving is less than 70 days away, which will halve the market supply of BTC from 6.25 BTC per block to 3.125 BTC.

With mounting demand from institutional investors, the dwindling supply could propel BTC to reach new market highs.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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