- Spot Bitcoin ETFs have recently witnessed significant inflows, accumulating a total of $4 billion in net inflow so far.
- In a recent analysis by renowned crypto analyst Ted Talks Macro, the regret of net inflows from Spot Bitcoin ETFs is emphasized.
- Ted Talks Macro suggests that such a high level of net inflow may not be sustainably continuous.
The net inflow in spot Bitcoin ETFs that began trading in the U.S. on January 11 has reached a significant gain of $4 billion.
Inflows in Spot Bitcoin ETFs Reach a Significant Milestone
Spot Bitcoin ETFs have recently seen notable inflows, accumulating a total of $4 billion in net inflow so far. Furthermore, on February 13th, a staggering net inflow of $631 million was recorded across eleven Bitcoin ETFs in a single day. The capital influx into these funds has recently led to a positive change in the price of Bitcoin.
In a recent analysis by renowned crypto analyst Ted Talks Macro, the regret of net inflows from Spot Bitcoin ETFs is emphasized. Since February 5, 2024, with a total net inflow of $2.38 billion into Spot ETFs, the price of Bitcoin has risen from $42.6 thousand to $49.6 thousand. Ted Talks Macro details the numbers, revealing an interesting correlation where for every $1 billion in net inflow, the price of Bitcoin has increased by approximately $2,900.
Highlighting the daily average net inflow of around $265 million, Ted Talks Macro suggests that theoretically, this inflow corresponds to a daily price increase of about $768 for Bitcoin. With the current price of Bitcoin being approximately $20,000 away from its all-time high, Ted Talks Macro calculates that reaching new all-time highs at the current net inflow rate could take around 26 days.
However, Ted Talks Macro notes that such a high level of net inflow may not be sustainably continuous. The analysis also acknowledges that assuming a linear relationship between flows and Bitcoin price is simplified and used for explanatory purposes, and the dynamic nature of the market may suggest otherwise.
Latest Inflow Data
According to Farside statistics, iShares Bitcoin ETF (IBIT) managed by BlackRock experienced a massive investment increase of $493 million on Tuesday. BlackRock leads in this regard, leaving its competitors significantly behind. Following closely, Fidelity recorded the second-highest inflow on Tuesday with $163 million.
On the other hand, outflows from Grayscale’s GBTC have notably slowed down, staying below $100 million in the last three days of this week. Overall, Bitcoin ETFs have seen a net inflow of $3.7 billion. Asset management giant BlackRock observed a net inflow of $4.6 billion, while GBTC experienced a net outflow of $6.5 billion.
Previously, on February 12th, Monday, Spot Bitcoin ETFs acquired approximately ten times more Bitcoin than what miners produced. According to initial data, these Spot ETFs obtained a sum equivalent to at least $493.4 million or around 10,280 BTC. As a comparison, on the same day, Bitcoin miners produced about 1,059 BTC worth around $51 million, representing only 10% of the amount accumulated by Spot ETFs.
