Money Flows into Bitcoin ETFs Hit Record $1 Billion in a Single Day, BTC Price Continues to Explore $73,000 Peaks

Bitcoin ETFs continue to be the main driving force behind the crypto market's bullish momentum. In the latest trading day, over $1 billion flooded into these products, led by BlackRock's IBTC fund.

Money Flows into Bitcoin ETFs Hit Record $1 Billion in a Single Day, BTC Price Continues to Explore $73,000 Peaks

As of the end of the trading day on 12/03 in US time, aggregated data from BitMEX Research revealed that capital inflows into Bitcoin ETFs had set a new record of $1 billion in a single day.

Leading this surge is the familiar name IBIT from BlackRock, with net capital inflows totaling $849 million. This means BlackRock alone accounted for nearly 85% of the total inflows into spot ETFs.

Furthermore, withdrawals from Grayscale's GBTC were notably low compared to previous days, registering only $79 million outflows. For comparison, the highest outflows occurred on 01/22, with over $640 million exiting the GBTC fund.

These figures indicate almost no selling pressure from ETFs, only buying momentum, thereby pushing BTC prices sharply higher, continuously breaking through peaks and setting new all-time highs.

On the afternoon of 13/03 according to Vietnam time, BTC continued to surpass the $73,000 mark, currently trading at price levels unprecedented in its 15-year history.

1-hour chart of BTC/USDT pair on Binance at 03:20 PM on 13/03/2024

BlackRock's IBIT now holds approximately 204,000 BTC, valued at around $14.7 billion. Following IBIT is Fidelity's FBTC with over 128,000 BTC and Ark Invest/21Shares' ARKB with nearly 38,000 BTC.

The competition now shifts to a new arena between BlackRock and MicroStrategy. Just two days ago, on 03/11, BlackRock's ETF held more BTC than MicroStrategy. However, a day later, MicroStrategy purchased an additional 12,000 BTC, increasing its holdings to 205,000 BTC. Thus, MicroStrategy now owns 1,000 BTC more than BlackRock.

With the current influx of capital into ETFs, BlackRock's holdings may increase further in the near future. Hence, this battle remains neck and neck.

It's worth noting that the massive funds mentioned above come from spot Bitcoin ETFs, products approved by the SEC just two months ago. Meanwhile, futures ETFs introduced since 2021 only hold a 10% market share.

This illustrates that investors still prefer direct exposure to BTC through spot ETFs rather than futures-based products. This underscores the importance of spot ETFs and explains the anticipation for the upcoming Ethereum spot ETF in May.

However, the outlook for Ethereum ETFs isn't overly optimistic, as Bloomberg analysts recently reduced approval rate predictions to only 35%.