Amid robust investment inflows into Bitcoin ETFs, the price of BTC surged to a new two-year peak, surpassing $57,000, with its market capitalization exceeding $1.1 trillion.
Since their debut on January 11, nine new spot Bitcoin exchange-traded funds (ETFs) have accumulated 300,000 BTC, valued at $17 billion. These ETFs have witnessed a net influx of over $6 billion within a span of fewer than two months.
The collective Bitcoin holdings of these spot ETFs now represent approximately 1.5% of the total supply of 21 million BTC. With heightened demand and limited supply, the price of BTC surged to over $57,000 on February 27, marking a new yearly high. Despite being 20% lower than its all-time high of nearly $69,000, Bitcoin’s market capitalization has exceeded $1.1 trillion.
On Monday, February 26, spot Bitcoin ETFs experienced a significant surge in net inflow, surpassing half a billion dollars, alongside recording their highest trading volume day of $2.4 billion. Notably, BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund emerged as the top volume contributors.
While inflows into spot Bitcoin ETFs continue to rise, Grayscale’s Bitcoin Trust (GBTC) witnessed a decline in outflows, indicating substantial market demand for spot Bitcoin ETFs. The consistent net inflows, coupled with diminishing GBTC outflows, suggest a strong market appetite for Bitcoin ETFs, particularly as the Bitcoin halving event approaches in less than two months.
Currently, miners are adding 900 new BTC to the daily supply, yet spot Bitcoin ETFs are witnessing net inflows ranging from 8,000 to 9,000 BTC on each trading day, further reducing the available supply and contributing to a bullish outlook for the price of BTC.