The U.S.-based Spot Bitcoin exchange-traded fund (ETF) traded 562,000 BTC on March 4, as the price of BTC topped $68,000 and moved closer to the cryptocurrency’s all-time high of about $69,000. It recorded a net inflow of $1 million. This was the third-highest day of inflows into the Spot Bitcoin ETF since it began trading on January 11th.
The March 4 inflow occurred despite outflows from several smaller players and the Grayscale Bitcoin Trust (GBTC). GBTC lost $368 million that day. BlackRock’s iShares Bitcoin Trust had the largest inflow of $420 million, followed by Fidelity’s Wise Origin Bitcoin Trust with $404 million. Net inflows into Spot Bitcoin ETFs on the day were 10 times the amount of new BTC added to the supply through mining activity.
Spot Bitcoin ETF trading volume reached a total of $5.5 billion on March 4th, marking the second-highest trading volume since the product was launched. Due to high trading volumes and institutional demand, spot Bitcoin ETFs, exchange-traded products, and trackers currently handle approximately 1 million BTC, representing approximately 5.13% of the total circulating supply of BTC.
Related: Gold ETFs set to lose $2.4 billion by 2024 as Bitcoin ETFs hit record volumes
The Spot Bitcoin ETF has recorded net inflows of $7.5 billion worth of BTC in its first two months since launch, despite outflows of more than $9 billion. His IBIT at BlackRock is already Assets under management reached $10 billion. In contrast, gold ETFs took nearly two years to reach this number.
Demand for Bitcoin ETFs could increase in coming days due to BlackRock influence filing To purchase BTC for the Strategic Income Opportunities Fund. The upcoming Bitcoin halving next month will cut the daily new BTC supply in half, further increasing BTC prices, even though current market demand already exceeds new supply by a factor of 10. It has the potential to be a catalyst.
