Bitcoin Spot ETFs Achieve $500m Daily Inflows, Michael Saylor Weighs In
It appears the Bitcoin market is finally catching up to the buzz surrounding the lead-up and eventual approval of a spot ETF last month. While many predicted an influx of institutional interest – and a resultant price spike – BTC mostly moved sideways while outflows from Grayscale Bitcoin Trust (GBTC) dominated the ETF movement.
However, record-breaking inflows (money coming into Bitcoin ETFs) have spurred a recent rally, with Bitcoin finally breaking the USD $50K (AUD $77K) milestone for the first time in two years. It caps off a stunning turnaround for BTC over the past 12 months, with the coin breaking out of the crypto winter and posting 130% gains.
BlackRock Bitcoin ETF Still Leading the Way
The Bitcoin spot ETF market achieved more than USD $500M (AUD $770M) worth of net inflows yesterday, the most it has seen since inception. Although the market has seen higher individual days of trading, many such days were filled with significant outflows from GBTC, causing the amount of new money entering the industry rather subdued.
However, things have turned around significantly over the past week. The 5th and 6th of Feb combined for approximately USD $100M (AUD $153M) worth of inflows. The 7th of Feb built on this number with an impressive USD $146M (AUD $224M), followed by Feb the 8th which exploded with USD $405M (AUD $621M) worth of inflows.
BlackRock’s IBIT fund was responsible for the lion’s share of inflows, with the financial goliaths seeing inflows of USD $250M (AUD $383M) on the 9th of February alone. BlackRock now holds a whopping 87,779 BTC.
Michael Saylor Believes the “Bitcoin Gold Rush Era” Is Upon Us
The next ten years represent the ‘Bitcoin Gold Rush Era’”
In an interview with CNBC Finance, Saylor reiterated that TradFi’s newfound interest in Bitcoin was only a matter of time – and that the current surge of inflows is just the beginning.
It’s now the world’s most popular investment asset. It’s novel. It’s digital. It’s global. It’s unique. And it’s uncorrelated to traditional risk assets because it doesn’t come with exposure to any given country, currency, company, product cycle…not to weather, not to war, employee base or supply chain…There’s ten years of pent up demand and finally mainstream investors are able to access Bitcoin”
Meanwhile, MicroStrategy’s BTC holdings are now worth USD $9.5B (AUD $15B), with the company enjoying a 40%+ increase in stock price since spot ETFs were approved in January.