Bitcoin ETF record gets broken yet again on $612 million inflow
Bitcoin ETFs – fueled by fear of missing out on the latest crypto rally.
BlackRock Inc.’s iShares Bitcoin Trust (ticker IBIT) netted $612 million Wednesday in its biggest one-session haul, breaking a record set just a day prior, data compiled by Bloomberg show. Altogether, the 10 new exchange-traded funds investing directly in the world’s biggest cryptocurrency took in a net $673 million, even with the outflows seen by Grayscale Bitcoin Trust (GBTC). The cash pouring into the funds handily beat their launch day record of $655 million set on Jan. 11.
As Bitcoin surges past $60,000 and on toward new highs, the rush of money into the ETFs, particularly BlackRock’s IBIT, helps explain the digital asset’s remarkable run this year. At the crux of the rally is basic economics: supply and demand. Ever since the spot Bitcoin ETFs were launched last month, demand for the token has outstripped the amount of the cryptocurrency that long-time holders are willing to sell.
Bitcoin has already surged more than 40% this year, driven in part by the successful launch of the ETFs, and making it a top performer across all asset types. Just as proponents of the spot ETFs predicted would occur, last month’s arrival of the new products has kicked open the door to fresh investment, giving the institutional and retail traders a new and easier avenue for sinking capital across the asset class. The interest is evident from the traded value within the group — excluding Grayscale’s fund — as it doubled to over $6 billion with IBIT comprising
