Spot Bitcoin ETFs recorded a straight week of outflows, but managed to take it 228.97 BTC a day earlier. This marks the first time there has been a positive net flow for Bitcoin ETFs after March 15th, Friday.
Last week, Bitcoin experienced a rough patch of volatility and this had seen outflows from Bitcoin ETFs reach almost $1 billion.
The flow
At current prices, the inflow recorded by the ETFs a day prior was valued at $15 million. Bitcoin managed to blast past the $70,000 mark once more, after recording declines last week.
The market capitalization of the largest crypto token in the market is now close to $1.4 trillion and the past day saw about $47 billion worth of BTC tokens change hands.
The highest inflows were recorded by the Fidelity Wise Origin Bitcoin Fund (FBTC), as its total Bitcoin inflows on Monday stood at $262 million.
The value of new shares created in the BlackRock iShares Bitcoin Trust (IBIT) was around $35 million, while $20.5 million worth of shares were created by Franklin Templeton’s Franklin Bitcoin ETF (EZBC).
The trend shows that Wall Street titans have been able to record a faster increase in their assets under management as opposed to their crypto-specific counterparts, like VanEck, or Cathie Wood’s ARK Invest.
ETF success
The Grayscale Bitcoin Trust (GBTC) has proven to be the outlier among the Bitcoin ETFs. Since 2013, it had been trading on OTC desks before its conversion into a spot Bitcoin ETF in January.
Since the conversion of the fund, investors have withdrawn more than $14 billion from it. But, despite the outflows from GBTC, the ETFs have largely been successful.
According to analysts and execs, the success recorded by these new ETFs shows that institutions had pent-up demand for BTC.
John O’Loghlen, the Coinbase Asia-Pacific Managing Director, said that the announcement of the spot Bitcoin ETFs and the new demand for Bitcoin cannot be decoupled.
He added that the reality has finally sunk in and now they need to watch where things are going to go from here.
The impact
Meanwhile, BTC gains have given a boost to the shares of Coinbase, the publicly traded crypto exchange.
Its shares traded under the ticker COIN on Nasdaq and the share price of the San Francisco-based company stood at $279.71 on Monday.
This marks a gain of 14% in a single day. There was also a 2% gain in early market trading on Tuesday, as the shares were changing hands at $285.60.
The price of Coinbase’s shares has become even more closely tied to Bitcoin because the crypto exchange is now the custodian of 206,000 BTC tokens that back ETF shares.
Therefore, analysts are now looking forward to the impact on the bottom line of Coinbase for the first quarter of the year. The earnings call of the company is scheduled to take place in May.