Record Net Inflows Seen in Bitcoin ETFs, BlackRock Dominates 70%

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  • Bitcoin ETF inflows have surged past $600 million, with BlackRock’s IBIT emerging as the leader in single-day inflows, attracting $493 million.
  • Following a slight downturn prompted by higher-than-expected CPI inflation data in January, Bitcoin quickly rebounded, gaining 3% and reaching $51,500.

After a slow start to the month of February, Bitcoin ETF inflows have once again gathered pace this week. Amid this strong demand for Bitcoin gaming retail and institutional players, analysts have once again started comparing Bitcoin to Gold.

According to insights from on-chain data provider Checkmate, Bitcoin is steadily narrowing the gap with Gold, traditionally regarded as the top-tier asset for sound money.

Gold, with an estimated total above-ground stock of around $14 trillion, including $3.0 trillion in Bullion and ETFs, and $2.36 trillion held by Central Banks, has long been viewed as a secure asset class, making up 38% of the investment-grade category.

However, Checkmate’s analysis suggests that Bitcoin’s presence in the investment-grade sound money market cap is growing rapidly. Currently representing 15% of the total investment grade market cap, BTC’s upward trajectory indicates promising prospects in the domain of sound money assets.

Analyst Bitcoin Munger highlighted a significant inflow into two Bitcoin Exchange-Traded Funds (ETFs) in the past week, contrasting with a noticeable absence of Gold in the top 20 assets experiencing strong inflows. This observation underscores the changing dynamics of traditional safe-haven assets amid Bitcoin’s rising prominence.

Looking ahead, Munger suggests that Bitcoin’s disruption of gold may unfold at a pace quicker than anticipated by advocates of the precious metal, commonly referred to as goldbugs.

Bitcoin ETF Inflows Shoots Past $600 Million

On February 13th, Bitcoin spot exchange-traded funds (ETFs) recorded a historic milestone, with total net inflows surging to $631 million, marking thirteen consecutive trading days of net inflows.

However, the Grayscale Bitcoin Trust (GBTC) witnessed a substantial net outflow of $72.83 million on the same day. Excluding GBTC, the remaining nine ETFs collectively saw a remarkable net inflow of $704 million.

Notably, the BlackRock ETF IBIT emerged as the leader in single-day net inflows among Bitcoin spot ETFs, attracting $493 million in net inflows, constituting 70% of the total daily inflow, as per data from Farside Investors.

Renowned crypto analyst Michael van de Poppe acknowledged the significant influx into Bitcoin ETFs but cautioned against assuming continued growth in the future. He emphasized that as long as the Bitcoin price remained above $46,000, upward momentum would likely persist.

According to Poppe’s assessment, BTC could potentially surge to $55,000 during the pre-halving rally. Similarly, market analyst Rekt Capital expressed confidence that the downside leading up to the halving event has concluded, suggesting that Bitcoin has entered the pre-halving rally phase.

Bureau of Labor Statistics unveiled January’s consumer price index (CPI) inflation data. Surpassing street forecasts, the CPI registered at 3.1%, higher than the anticipated 2.9%. Consequently, Wall Street experienced a notable decline, with the S&P 500 Index dropping by 1.4%. This marked the weakest performance for the S&P 500 on a CPI release day since September 2022.

However, Bitcoin has once again bounced back strongly gaining another 3% and shooting all the way to $51,500, at press time.


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