Spot Bitcoin ETFs Attract Massive Inflows, Poised to Acquire 2 Million BTC

Written by Boldson on 16 January 2024. Posted in Hardware

In a significant development, spot Bitcoin ETFs in the US are witnessing substantial inflows, potentially accumulating 2 million BTC. Alistair Milne, CIO of Altana Digital Currency Fund, points out that the current activity level may not be fully reflected in Bitcoin's bullish outlook.

Initial estimates reveal that these ETFs garnered approximately $1.4 billion in inflows over their first two trading sessions. After factoring in Grayscale's outflows, the net inflow stands at around $819 million, translating to over $400 million per day. Gabor Gurbacs, advisor at Tether and VanEck, adds context, highlighting that at the current net inflow rate of approximately $300 million per day, these spot Bitcoin ETFs could be purchasing around 7,000 BTC daily – a remarkable figure compared to the daily mining output of approximately 900 BTC.

Bitcoin's response to the ETF launch was noteworthy, initially reaching $49,000 but subsequently retracting to around $41,000. Theories on this volatility range from redemptions in Grayscale Bitcoin Trust (GBTC) spot ETF to profit-taking by South Korean and Asian traders anticipating the ETF launch. The interplay of these factors possibly contributed to the initial weakness.

As the crypto community observes this unfolding scenario, the spotlight is on the potential acquisition of a significant BTC volume by these spot ETFs, hinting at a fundamental repricing of the cryptocurrency.