NEW YORK, February 29, 2024 — On Wednesday, spot bitcoin ETFs experienced record-breaking inflows as Bitcoin's price surged and trading volumes soared. The new peak in inflows highlights the growing demand for these investment products, which were made available following their approval by the Securities and Exchange Commission in January. This approval marked a significant shift, providing broader access to Bitcoin investment for a wider range of investors.

According to BitMEX Research, the 10 U.S. spot bitcoin ETFs saw a combined $673 million in net inflows on Wednesday, surpassing the previous record of $655 million set on their launch day, January 11. Leading the charge were BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC), which attracted net inflows of $612 million and $245 million, respectively. In contrast, the higher-priced Grayscale Investments’ Bitcoin Trust ETF (GBTC) saw $216 million in net outflows on the same day.

Despite GBTC's significant outflows, which total $7.8 billion, the overall inflows into the bitcoin ETFs have been positive, reaching $7.4 billion over approximately seven weeks. The inflows are expected to continue gaining momentum as more wealth managers become comfortable with allocating these products to their clients. As of Wednesday, IBIT had surpassed $9 billion in assets under management, while FBTC exceeded $6 billion. GBTC, which transitioned to an ETF, manages around $26.4 billion.

The record inflow coincided with Bitcoin's price approaching $64,000 before retreating slightly to around $62,600 by Thursday morning, marking a 21% increase over the past week. Trading volumes for the 10 bitcoin ETFs totaled $7.6 billion on Wednesday, eclipsing the $4.5 billion seen on their debut day. BlackRock’s fund has set new records in trading volume over the past three days, underscoring its dominant position in the market.