As the weekend comes to a close, spot Bitcoin ETFs maintain their position in a holding pattern, with traders eagerly anticipating a potential surge in momentum in the upcoming trading week. Despite the delay in action, market sentiment remains buoyant as investors continue to monitor developments closely.
Bitcoin exchange-traded funds (ETFs) have seen another impressive week, marked by substantial net inflows exceeding $2.2 billion from February 12th to 16th. This surge in volume surpasses inflows received by any other among the 3,400 ETFs available in the United States.
Notably, one ETF emerged as the frontrunner, attracting the lion’s share of capital with positive flows totaling $1.6 billion over the week, as per data analysis. It’s worth noting that this particular ETF alone has taken in $5.2 billion year-to-date, representing a significant portion of total net ETF flows.
Spot Bitcoin (BTC) ETFs, holding billions of dollars in assets, also saw significant traction. One fund recorded substantial inflows of $648.5 million over the last five trading sessions, while two others pulled in $405 million and $232.1 million in capital inflows, respectively.
However, the performance of these new spot Bitcoin ETFs was somewhat overshadowed by outflows from another fund, which witnessed withdrawals amounting to $624 million from February 12th to 16th. This continued sell-off trend has persisted since its conversion from an over-the-counter product to a spot ETF on January 10th, resulting in over $7 billion in capital outflows.
The introduction of these new ETFs is believed to be a key driver of Bitcoin’s recent price surge. The cryptocurrency has soared by 91% in the past four months, buoyed by market sentiment surrounding the approval of spot Bitcoin ETFs by regulatory authorities on January 10th.
Throughout the week, Bitcoin experienced a nearly 7% increase, currently trading at $51,434, marking a 24% climb in February alone.
In addition to market enthusiasm, major banks and financial institutions are taking note of the burgeoning ETF landscape. A coalition of trade groups representing Wall Street’s biggest firms penned a letter on February 14th, urging regulatory authorities to consider modifications to provide guidance on accounting for crypto asset custody obligations, potentially enabling banks to serve as custodians for BTC funds.
As spot Bitcoin ETFs continue to navigate regulatory hurdles, market confidence remains high, with investors eagerly anticipating renewed momentum and further price gains in the weeks ahead.
