Inflow of funds into spot BTC ETFs amounted to a record $1,05 billion per day

At the same time, the record for trading volumes of shares set on March 5 has not been broken

13.03.2024 - 12:10

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4 min

What’s new? On March 12, the total daily inflows into ten US spot bitcoin exchange-traded funds (ETFs) hit a high of $1,05 billion. The previous high of $673,42 million was recorded on February 28. Meanwhile, the new record was partially offset by outflows from Grayscale’s GBTC and BTCO funds, jointly managed by Invesco and Galaxy Digital: $78,97 million and $19,66 million, respectively.

SoSoValue’s data

What else is known? GBTC is the only one of all the funds that is not new; until it began trading on January 11 this year, it operated as a bitcoin trust with no redemption option for the shares, which traded at a discount to the underlying asset. After converting to a spot BTC ETF, Grayscale set a management fee of 1,5%, which is significantly higher compared to its competitors.

Combined, these factors have resulted in GBTC, which is the largest BTC holder among funds, continuing to face outflows. As of March 12, it had reached $11,13 billion.

Each of the nine new funds demonstrated positive results most of the time since the start of trading. Among them, the leader is IBIT from the world’s largest investment company BlackRock. Cumulative inflows into IBIT reached $11,44 billion, with the fund managing $15,42 billion worth of bitcoins.

For a short while, BlackRock even surpassed MicroStrategy, an analytical software developer, in terms of bitcoin volume on its accounts. The company does not have its own BTC ETF but is the largest holder of the asset among public companies. Later, both firms increased the volume of BTC in their accounts, and MicroStrategy once again took the lead.

Inflows into VanEck’s HODL fund grew significantly, jumping 1416% to $118,85 million from March 10-11 alone. This came after the company eliminated management fees. Zero fees will be in effect until March 2025, or until the value of assets under management of the fund exceeds $1,5 billion. For now, that figure stands at $515,77 million.

Despite the record daily inflow of funds, the trading volume of BTC ETF shares totaled $8,67 billion, down 17% from the record set on March 5.

Daily trading volume for ten spot BTC ETFs hit a record above $10 billion

This may indicate the traders’ desire to fix profits on the background of the growth of the asset rate

Earlier, the head of the analytics company CryptoQuant Ki Young Ju said that within 6 months the BTC exchange rate may reach a new peak that will “exceed our expectations.” According to him, this will happen as a result of a liquidity crisis among BTC sellers, which will come if high volumes of inflows into spot BTC ETFs continue (last week alone net inflows amounted to 30 000 coins).