As Bitcoin Targets $55,000, Money Flows Into Spot ETFs at an Accelerated Pace!

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• Spot Bitcoin ETFs witnessed a massive influx, the largest third net inflow ever recorded, totaling $493.3 million, following Bitcoin’s price surpassing $50,000.
• The newly launched Nine and Grayscale’s GBTC spot Bitcoin ETF made a strong debut on February 12th with a net inflow of $493.3 million.
• Fidelity (FBTC) and Ark 21Shares (ARKB) Bitcoin ETFs saw inflows of $151.9 million and $40 million, respectively.

As the Bitcoin price continues its rapid ascent, money is pouring into spot Bitcoin ETFs: Here are the latest updates!

Increasing Interest in ETFs as Bitcoin Price Rises

On Monday, Spot Bitcoin ETFs saw a massive net inflow of $493.3 million, the largest third net inflow ever recorded, as Bitcoin’s price crossed $50,000. Experts believe that the accumulation of demand from Bitcoin ETFs and derivative traders will sustain the BTC price rally.

The newly created Nine and Grayscale’s GBTC spot Bitcoin ETF made a strong debut on February 12th with a net inflow of $493.3 million, according to the latest Bitcoin ETF flow data. BlackRock (IBIT) recorded a record-breaking inflow of $374.7 million, pushing the total inflow beyond $4.126 billion. The assets under management for BlackRock’s Bitcoin ETF currently stand at $4.76 billion.

Inflows into Fidelity (FBTC) and Ark 21Shares (ARKB) Bitcoin ETFs amounted to $151.9 million and $40 million, respectively. Bitwise (BITB), VanEck (HODL), and others also experienced significant inflows. However, Invesco Galaxy Bitcoin ETF (BTCO) saw another outflow of $20.8 million.

Additionally, GBTC saw an outflow of $95 million, marking an increase from the $51.8 million outflow on Friday but aligning with the range of the past week. Thus, the net inflow for spot Bitcoin ETFs, excluding GBTC, was $589 million. Total inflows for BlackRock and Fidelity Wise Origin Bitcoin ETFs were $4.12 billion and $3.15 billion, respectively. ETFs make daily purchases of 10,000 Bitcoins based on a standard balance, reflecting in price increases.

Bitcoin Price Outlook

With the BTC price surpassing $50,000, the likelihood of reaching over $55,000 is high, corresponding to a significant influx into Bitcoin ETFs. The Crypto Fear and Greed Index reached the “extreme greed” level with a value of 79, the highest since November 2021.

The Bitcoin ETF saw a net inflow of $542 million on Friday as investors move towards an all-time high. Demand from Bitcoin ETFs and derivative traders persists, while the supply from miners remains low. The shift in supply dynamics is causing institutional investors to turn highly bullish on Bitcoin.

Bitcoin derivative traders are placing call bets up to $70,000 by the end of the month. Experts believe that if demand remains high for Bitcoin before the halving processes, new buyers may not find an opportunity to purchase BTC below $50,000.